us and cross border tax Archives

Overview of FATCA and its impact on U.S. residents in Canada

On February, 2014, the government of Canada and the U.S. has finalized the Foreign Account Tax Compliance Act (FATCA) which will come into effect on July 1, 2014. This agreement will provide the Internal Revenue Service (IRS) with better access to information about US residents’ foreign bank activities and means trouble for US residents who … Continue reading

Do investors who receive form 1099 or form 1042 from the U.S. have to file a U.S. tax return?

No, as long as the proper withholding taxes were held on your dividends and interest income. For dividends it is 15% and for interest, it is 0%.

As a US citizen, is there any benefits of holding a TFSA/RESP?

No. For US tax purposes, these accounts are not recognized as tax free accounts. That means that any income earned within these accounts will be taxed when you file your US tax return. Furthermore, some TFSA and all RESP accounts are considered foreign trusts for US tax purposes. This causes additional tax reporting burden on … Continue reading

What is the tax deadline for U.S. Personal Tax Return?

By default, the U.S. personal tax return is due by April 15 of the following year. However, if on April 15 you live and work outside the U.S., your deadline is extended to June 15. Whether your deadline is April 15 or June 15, if you require additional time to file, you can submit Form … Continue reading

Permanent Establishment for Short Term Contracts in the US

Imagine that you are a Canadian company sending an employee to the United States to fulfill a job order for a US customer. You feel that you know all about the Permanent Establishment rules and you are confident that as the employee is in the US on a temporary basis, his/her presence will not constitute … Continue reading

Sales tax in the United States

Canadians conducting business in the United States must be aware of potential sales tax responsibilities. In addition to Federal and State income taxes, businesses in the US may be required to collect and remit sales taxes to State or Municipal governments. What do I need to know about Sales Tax in the United States? Sales … Continue reading

What happens to my IRA & 401K if I temporarily relocate to Canada?

I am a US citizen who is being relocated to work in Canada temporarily by my employer. Can I continue to contribute to my employer sponsored IRA/401(k) and will Canada allow me to claim a tax deduction for contributions I make to my US retirement plan? Yes, as long as you were a US resident … Continue reading

Cross-Border Tax Tips for Online Business in Canada

Cross Border Taxes- Tips on Doing Online Business in Canada By: Allan Madan | Aug 18th, 2013 | Tax, US Tax, Canadian Tax Cross Border Taxes are often overlooked by online business in the U.S., even when they sell to customers north of the border. However, you can bet that sooner or later, you will … Continue reading

Do Canadian residents need to file US tax return for U.S. Yield?

No, first of all, dividend from the U.S. is subject to 15% withholding tax whereas interest income from the U.S. is not subject to any withholding tax as per the Canada – U.S. tax treaty. Both sources of income will not create a U.S. tax filing liability to Canadians as long as the proper amount … Continue reading

When are U.S. Personal Tax Returns due?

US personal tax returns are due on April 15 of the following taxation year. However, if you live and work outside the US on a normal basis, the deadline is automatically extended to June 15. Furthermore, any taxpayer may request additional time to file by filing this form to the IRS by their due date. … Continue reading

Do U.S. businesses need an extra-provincial license for Canadian?

Americans, who are not incorporated, and who are carrying on business in a Canadian Province, must register their business in that province. To register, you must obtain an extra-provincial license. Failure to register can result in a penalty of $2,000 for individuals. Selling products to Canadian customers or providing services to Canadian customers is considered … Continue reading

How can Canadian residents bring U.S. 401k funds to Canada?

The most tax efficient method is to transfer these funds to your RRSP. Unfortunately, you cannot directly transfer your 401K to your RRSP. This transfer can be completed as follows: Open a Rollover Individual Retirement Account (IRA) account with an investment firm capable of cross border investment management. Rollover the 401k to an IRA. Withdraw … Continue reading

US tax issues for Canadian online businesses explained.

As a U.S. tax accountant in Canada, I have come across many Canadian online businesses that sell to U.S. customers who completely ignore the IRS (Internal Revenue Service). The U.S. is a global hub for international business. The result? America has one of the world’s most complicated tax codes with hidden traps everywhere. As such, … Continue reading

Filing Back Tax Returns for U.S. Citizens Living in Canada Watch Video

This short article is called ‘Filing Back Tax Returns for US Citizens Living in Canada’

How Canadians Should Own U.S. Real Estate Watch Video

This article is called “How Canadians Should Own US Real Estate” and going through it is bound to help

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