US Partnership – tax implication

LLP structure is one of the best entity for Canadian investors seeking legal liability as well as for avoiding double taxation whereas LLC is not recommended. More and more Canadians, realizing the real estate opportunity available in the US are turning to Partnership structure for their real estate investments. However, not many Canadians are fully … Continue reading US Partnership – tax implication

Tax Implications for US Citizens working in Canada

US citizens working in Canada have to file a Canadian tax return and pay Canadian tax. If you are a US Citizen working in Canada as an employee, you should be aware of what tax obligations are applicable to you or you could end up facing large penalties. Here are the tax-related responsibilities that you … Continue reading Tax Implications for US Citizens working in Canada

Employer Identification Number (EIN) for Canadian Companies

Learn why and when a Canadian business is required to have an Employer Identification Number from the US. An Employer Identification Number (EIN) is required for Canadian companies that do business in the US. If you are a Canadian company that is connected to the US, even in a small way, make sure that you … Continue reading Employer Identification Number (EIN) for Canadian Companies

US-Canada tax implications of Canadian company sending employees to work in the US

US-Canada tax experts reveal the most common pitfalls that Canadian companies face when sending employees to the US. What is an ITIN? Are you a Canadian corporation that’s sending one or more of your employees to work in the US? If yes, then be sure to avoid the following three most common mistakes made by … Continue reading US-Canada tax implications of Canadian company sending employees to work in the US

U.S. personal tax filing for Canadian expatriates working in the US

As a Canadian expatriate working in the U.S, you will be subject to U.S tax on the employment earned in the US. Are you employed by a Canadian business and working in the U.S? Are you aware that this type of cross border employment will trigger U.S. federal tax, state tax, and US filing requirements? … Continue reading U.S. personal tax filing for Canadian expatriates working in the US

What tax deductions can Americans working for a Canadian company in Canada claim?

Question: I’m an American considering work for a Canadian company in Canada. I understand taxes will be payable to Canada, both Federal and State. My residence and family will stay in the US. Can I deduct from gross income the following: Rent Food< Charitable giving Vehicle lease, gasoline & vehicle maintenance Airplane costs to travel … Continue reading What tax deductions can Americans working for a Canadian company in Canada claim?

How are RRSPs taxed in the U.S.?

For U.S. Citizens or U.S. residents who hold a Canadian RRSP, it should be noted that the IRS treats the RRSP just like any other investment account and therefore, imposes tax annually on the growth of the investments inside the RRSP. However, an election can be made by completing the Form 8891 annually with your … Continue reading How are RRSPs taxed in the U.S.?

How are IRAs and Roth IRAs taxed in Canada?

This is a significant concern for U.S. citizens or green card holders who are also residents of Canada and therefore, must file tax returns in both countries. IRA An IRA has very similar characteristics to that of a Canadian RRSP – contributions are tax deductible, growth is tax free, and the withdrawals are taxed. However, … Continue reading How are IRAs and Roth IRAs taxed in Canada?

Who is required to complete the “Report of Foreign Bank and Financial Accounts (FBAR)” with the IRS?

Every U.S. Citizen, regardless of whether they live in the U.S. or not are required to file a FBAR Form to the IRS on an annual basis if the total value of the following foreign financial accounts exceed $10,000 at any time during the year: Bank Accounts RRSP/RESP/TFSA Brokerage account held for trading stocks and … Continue reading Who is required to complete the “Report of Foreign Bank and Financial Accounts (FBAR)” with the IRS?

As a Canadian, do I have to file a US tax return for online sales made to the US?

Question: I operate an online business in Canada, as a sole proprietor, which sells goods in the US. What are my US tax filing obligations? Answer: As a Non-Resident alien earning self employment income in the US, you are required to file a US non-resident personal tax return, 1040NR. You must also file Schedule C … Continue reading As a Canadian, do I have to file a US tax return for online sales made to the US?

I moved to the US and became a non-resident of Canada. What happens to my RRSP contributions?

There are a variety of factors you need to consider including your current year salary and your future plans in terms of returning to Canada. For example, if you had high income the year you left, you may still want to make an RRSP contribution in order to reduce your taxes owing. Withdrawing your RRSP … Continue reading I moved to the US and became a non-resident of Canada. What happens to my RRSP contributions?

I will be emigrating from Canada to the US, what are the tax consequences of my emigration?

If you are departing from Canada permanently, you will be required to pay taxes on any capital gains that arise from the deemed disposition of your non-personal assets. This means that all assets excluding those listed at the end of this FAQ are deemed to be disposed at their fair market value on the date … Continue reading I will be emigrating from Canada to the US, what are the tax consequences of my emigration?

If I am employed by a US company but perform work both in Canada and the US, should I just receive a W-2?

Assume that you are a Canadian resident and you perform work for a US based company in Canada and the US. The following will occur: The US employer must allocate your total employment income between Canada and the US, based on the number of days worked in each country. This means that you will be … Continue reading If I am employed by a US company but perform work both in Canada and the US, should I just receive a W-2?

What is the Canada-United States Income Tax Convention and how does it affect me?

The convention is a tax treaty between Canada and the United States that “overrides” certain areas of the tax acts to offer protection against double taxation.  If you are a US resident and earn income in Canada, or if you are a Canadian resident and earn income in the US, then the treaty can provide … Continue reading What is the Canada-United States Income Tax Convention and how does it affect me?

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