Tag: us and cross border tax

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?

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 US tax issues for Canadian online businesses explained.

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

Do U.S. Citizens who received a W2 slip for work done in Canada need to file a U.S. tax return?

As a Citizen of the U.S. you are required to file your worldwide income for the year. Since you earned the income in Canada, it is considered Canadian source income. As such, you will be eligible to either claim the Foreign Earned Income exclusion or Foreign Tax Credit (depending on which one lowers your tax … Continue reading Do U.S. Citizens who received a W2 slip for work done in Canada need to file a U.S. tax return?

I am filing a 1040 USA tax return, do I have to report my Canadian RRSP, TFSA account? If so, how?

You must disclose your TFSA account on your FBAR, known as Report of Foreign Bank and Financial Accounts if the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported. If your TFSA is held through a trust – you have to complete Form 3520A  and … Continue reading I am filing a 1040 USA tax return, do I have to report my Canadian RRSP, TFSA account? If so, how?

What happens when U.S. Partnership Returns are filed late?

Question:

What are the tax implications for a Canadian business that earns income in the U.S.?

As a Canadian business that is deriving income from sales that occurred in the US you will be required by the IRS to report this income on one of the following tax returns, depending on your organizational structure: • 1040-NR  • Form 1120-F• Form1065 The IRS has the right to levy income tax on business income … Continue reading What are the tax implications for a Canadian business that earns income in the U.S.?

If I have a rental property in the U.S., what do I need to attach with my US tax returns to ensure the IRS accepts the figures reported?

When submitting your tax return to the IRS, you must ensure that all figures that you claim as an expense have the proper documentation submitted with them. Additionally the receipts and invoices you submit along with your tax return must prove: The expense is reasonably considered to be an ordinary expense given the nature of … Continue reading If I have a rental property in the U.S., what do I need to attach with my US tax returns to ensure the IRS accepts the figures reported?

S corporations in Canada

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 companies in Canada, explained

An Employer Identification Number (EIN) is required for Canadian companies that do business in the US. If you have a business in Canada that is connected to the US, even in a small way, make sure that you read this article!

Tax implications for Canadians sending employees to 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 Tax implications for Canadians sending employees to the US.

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