Tag: us and cross border tax

How to Avoid Paying U.S. Estate Taxes Using a Two Tier Partnership Watch Video

US estate taxes can bring heavy and unwanted charges that can affect the money you have earned.

Tax on dividends from U.S. companies to Canadian parents.

As the last part of the three installments on ‘Foreign Accrual Property Income’, this article will focus on the Canadian taxation of dividends from foreign affiliates and controlled foreign affiliates that earns passive income. If you own a Canadian company that receives dividends from a US or foreign subsidiary then this article is for you. … Continue reading Tax on dividends from U.S. companies to Canadian parents.

When is the US Personal tax filing deadline?

Are you confused about the US Tax Return Filing Deadline? You are not alone. Because of its size and complexity, the US system can be source of great confusion for those filing personal income returns. This is especially true for residents and citizens who recently moved out of the U.S., who are used to filing … Continue reading When is the US Personal tax filing deadline?

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

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

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

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 Permanent Establishment for Short Term Contracts in the US

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 Sales tax in the United States

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

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 Cross-Border Tax Tips for Online Business in Canada

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

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 When are U.S. Personal Tax Returns due?

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

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

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