US/Cross Border Tax Services

Cross border and international tax issues can be complex. ​We have extensive knowledge of the US Internal Revenue Code and the Canadian Income Tax Act ensures you meet your filing requirements with optimal savings.

US Citizens Living in Canada

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The United States is among only a few governments who tax international income earned by their citizens, as well as permanent residents, residing overseas. US citizens, as well as permanent residents, are required to file expatriate tax returns every year regardless of where they reside. Along with the typical tax return for income, many people are also required to submit a return disclosing assets which are held in bank accounts in foreign countries by using FinCEN Form 114 (FBAR).

Preparing a quality tax return following proper tax planning should allow one to use these, as well as other strategies, in minimizing or possibly eliminating tax liability. Note that in most cases the filing of a tax return is required, even if taxes are not owed.

U.S. TAX COMPLIANCE FOR CANADIANS WHO OWN U.S. REAL PROPERTY

If you are a Canadian resident intending to buy a residential property in the United States it is important that you are aware of the following tax implications particularly if you intend to rent it for any period of time during the year.

A non-US resident owning a US residential rental property may be taxed at 30% of the gross rental revenue by default unless the owner files prescribed form and US income tax returns to elect to be taxed on the net income. The returns must be with the IRS within 16 months of the date the tax return was due. Otherwise the election is no longer available. 

If you are a Canadian resident owning US rental property and haven’t filed your US return. Please take action quickly before it passes the deadline. Missing the deadline means you will be taxed heavily (30% of the gross rental revenue and you can’t get it recovered from your Canadian taxes).

CANADIANS INVESTED IN U.S. REAL PROPERTY

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US Company Doing Business in Canada

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Are you doing business in Canada or have plans to expand to Canada? Frequently, taxpayers are not aware that by selling into Canada, or providing services such as installation or marketing, they may be required to file returns and/or pay income taxes in Canada. Such taxpayers may also need to file a special disclosure if they claim benefits under the U.S.-Canada income tax treaty (the treaty).

A U.S company carrying on business in Canada is required to file a treaty-based Canadian corporate income tax return, even if the activities are protected under the treaty. This informational return discloses the activities protected under the treaty. This return is due six months after year-end and the Canada Revenue Agency may impose late filing penalties.

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Phone: 416.399.8106 | Fax: 647.556.2180 | Email: info@canada-cpa.ca

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