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Avoiding double taxing between US and Canada.

Hi Jeff, Thank you for your question. In general, if you are a non-resident of Canada, your U.S. income is not normally taxed in Canada just because it is shown on a Canadian non-resident return. The confusion usually comes from Schedule A, Statement of World Income. CRA requires some non-residents to disclose their world income … Continue reading Avoiding double taxing between US and Canada.

Missed foreign Income

Thank you for your question. Based on the facts provided, this is likely something that should be corrected proactively. Since you missed reporting foreign income for the past 3 to 4 years, and your total foreign property appears to have exceeded CAD $100,000 in 2023 and 2024, there may be two separate issues: Unreported foreign … Continue reading Missed foreign Income

Form 5471 Preparation Fees

Hi Peace, Generally, I would be cautious about deducting Form 5471 preparation fees in the Canadian corporation. The main issue is that Form 5471 is typically a U.S. information return filing requirement imposed on the U.S. shareholders, not on the Canadian corporation itself. The IRS states that Form 5471 filing requirements apply to certain U.S. … Continue reading Form 5471 Preparation Fees

FHSA to RRSP transfer and PFIC concerns(moving to US)

Hi Peace, This can be a useful planning idea, but it needs to be handled carefully. From the Canadian tax side, a direct transfer from an FHSA to your own RRSP or RRIF can generally be done without immediate Canadian tax. It also generally does not use RRSP room, provided the transfer is done properly … Continue reading FHSA to RRSP transfer and PFIC concerns(moving to US)

Option Trading in RRSP accounts

Hi Sergey, In general, an RRSP can hold certain option strategies, but there are important limits. A covered call is generally viewed as more acceptable inside an RRSP where the plan already owns the underlying securities. CRA has indicated that writing a covered call, by itself, does not automatically mean the RRSP is carrying on … Continue reading Option Trading in RRSP accounts

2025 Canadian Tax Residency Guidance Question

Hi Todd, Thank you for your message. Based on the facts you provided, it may still be possible to file your 2025 Canadian return as a factual resident of Canada, since you appear to have maintained a number of ongoing residential ties with Canada, including your mailing address, driver’s licence, OHIP coverage, bank accounts, credit … Continue reading 2025 Canadian Tax Residency Guidance Question

Tax return help for usa and canada

Hi, Thank you for your message. Based on the facts you shared, it appears that you may need to file both a Canadian tax return and a U.S. tax return for 2025. Since you moved to Canada in March 2025 after living in the U.S. since 2019, the key issue will be determining your tax … Continue reading Tax return help for usa and canada

Canadian non-resident issued T5s – Tax filing requirement

Hi Nathan, Yes, in many cases the bank should have issued an NR4 instead of a T5 once you became a non-resident of Canada. CRA’s current guidance says amounts paid or credited by a Canadian resident to a non-resident are generally reported on an NR4, not a T5. That said, for a non-resident receiving ordinary … Continue reading Canadian non-resident issued T5s – Tax filing requirement

Non-Resident Short-Term Employment Income

Thank you for your question. Based on the facts you described, salary paid to you for duties physically performed in Canada would generally be considered Canadian-source employment income, even if you are a U.S. tax resident. As a result, your Canadian corporation would normally have Canadian payroll withholding and reporting obligations unless treaty relief is … Continue reading Non-Resident Short-Term Employment Income

Selling Rental Property as Non Resident

Hi Michael, Yes, you are broadly on the right track, but there are a couple of important distinctions. If you are a non-resident of Canada selling Canadian rental property, you generally need to file Form T2062 with the CRA within 10 days of the sale, or earlier based on the proposed sale, to request a … Continue reading Selling Rental Property as Non Resident

Canada and The UAE Tax Treaty

Hi Riaz, Canada generally withholds 25% tax on dividends paid to non-residents. However, if the recipient is a resident of the UAE for treaty purposes and is the beneficial owner of the dividend, the Canada-UAE tax treaty can reduce the withholding rate to 15% in most cases. If the recipient is a company that directly … Continue reading Canada and The UAE Tax Treaty

Compassionate care

Hi Chris, Thank you for your question. In general, if you left Canada and became a non-resident for tax purposes, the main step is usually to file a departure return for the year you left Canada. On that return, you would report the date you left Canada, your worldwide income earned up to that departure … Continue reading Compassionate care

Concerning foreign income conversion and whether FX and transfer fees are considered a loss/expense

Hi Luke, Yes, in many cases the FX conversion fees and transfer fees can be claimed as business expenses, provided they were incurred to earn your self-employment income and are reasonable in the circumstances. CRA generally allows reasonable expenses incurred to earn business income, and Form T2125 can be used to report those business expenses. … Continue reading Concerning foreign income conversion and whether FX and transfer fees are considered a loss/expense

T5 issued by bank instead of NR4 for savings account

Hi Matt, Generally, if you are a non-resident of Canada, interest paid by a Canadian bank on a regular savings account is usually exempt from Canadian withholding tax, provided you are dealing with the bank at arm’s length. In that case, you would normally not have to file a Canadian tax return or pay Canadian … Continue reading T5 issued by bank instead of NR4 for savings account

How much to file a (simple) Non-Resident 2025 Tax Return for Canada?

Hi Maria, Yes, we can assist with this type of filing. Based on the facts you provided, this would generally be a Canadian non-resident treaty-based return. You are a U.S. citizen, you worked in Canada for only 49 days in 2025, and you received a T4A-NR for the fees paid by the Royal Winnipeg Ballet. … Continue reading How much to file a (simple) Non-Resident 2025 Tax Return for Canada?

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