Answers Archive

I have a LLC partnership in the U.S., when do I need a U.S. Tax I.D. Number?

Do not directly invest in a LLC, otherwise you will be double taxed. There are specific cross border structures that are better for Canadians that limit your liability and avoid double taxation. The only way you can get an ITIN, is by attaching form W7 to a US tax return (e.g. 1040-NR). A certified copy … Continue reading

Would It Be Better For Tax Purposes To Register Multiple Online Stores Under One Corporation Or As Individual Businesses?

If each web-store is a separate business then it’s better to put each web-store in a separate corporation. This minimizes your overall risk. Should one web-store fail, it will not affect the other stores. In addition, having separate corporations allows for greater flexibility in a potential future sale. For example, you can sell the shares … Continue reading

Departure Tax and Selling Shares in Future

Once you pay departure tax, the adjusted cost base (ACB) of your stocks/shares increases to their fair market value as of the date departure tax is calculated. This revised ACB is used to determine the capital gain / loss when these stocks are later sold in the future. For example, assume that your purchased the … Continue reading

How can double taxation be avoided for corporations

You should form a US Limited Partnership in order to avoid double taxation and reduce risk. Click here to view our article.

Earning U.S. Dollars Living in Canada

Thanks for contacting me. I have many clients in the same situation as you. As a US citizen, you must pay US taxes on your worldwide income. To avoid / reduce double taxation, you can claim a foreign tax credit on your US tax return for part of the Canadian taxes paid. It may also … Continue reading

Selling Multiple Products Through A Corporation

You can add as many products as you like to your #company and you only have to file a single corporate tax return. Yes, you have to sell the batteries to your corp if you own them personally.

What is required for cross border shipping within a business?

So long as your business does not have a physical presence in the US, it will not be liable for US income taxes. However, your business will need a US EIN to provide to your US customer (if they requested it). In addition, your US customer will likely ask for a completed form W8-BEN-E. If … Continue reading

How can I claim a Certificate of Proficiency for Vessel Personnel certificate training course that is required by transport canada to work on a ship paid out of pocket?

Fees paid to get a professional certification are non-deductible.

use HST quick method for one business and not the other?

Yes, one business can use the quick method of HST collection while the other business can use the traditional method of HST collection. However, each business must have a separate HST number.

PR in both US and Canada in 2015

If you have permanently moved to the US from Canada, then you should file a departure ta return with the CRA for the year that you left Canada. You will also file a tax return with the IRS, with your US residency starting on the date that you received your US PR Card.

Can I use my son’s disability tax credit?

Yes, a child can transfer a disability tax credit to his/her parent if he/she cannot use it to reduce taxes payable.

When adding expenses up, do I includethe tax amount paid?

If you are not claiming a rebate (input tax credit) for the taxes paid, then you are supposed to deduct the taxes paid as an expense.

charitable donations

A charitable donation to a foreign charity can be claimed as a tax credit on your Canadian tax return so long as it is a listed charity. See http://www.cra-arc.gc.ca/chrts-gvng/qlfd-dns/qd-lstngs/gftsfrmhrmjsty-lst-eng.html for a listing. On our US return, you can claim a deduction for a donation to a Canadian charity so long as you are also reporting … Continue reading

TFSA stock brokerage account

Yes, you should put the shares in a TFSA to the extent you have room in the TFSA.

Question re: moving expenses, and legal fees deduction

Legal fees and other charges incurred with equalizing assets upon separation are non-deductible.

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