COVID-19 Exception: Substantial Presence Test (U.S.)
As we are in the final quarter of 2020, many wonder if they are subject to U.S. Income taxes due to the travel restrictions earlier in the year!
Good News: Yes, there is an exception available!
Generally, if you meet the substantial presence test (SPT), you are subject to U.S. income tax filing requirements. May Canadians spend a significant portion of the year in the U.S. especially in...
U.S. Canada Cross Border Taxation for Canadian Businesses
It is not unusual for Canadian businesses to expand into the United States.
U.S. and Canada have two different tax systems and such a decision needs careful planning and consideration.
In this post, we are going to have a quick overview of different structures that can be adopted by Canadian businesses to operate in the United States. This post is meant to be a simplified version for readers...
US Income Taxes for Canadian Businesses – Which Forms to File?
Canada is the second-largest trading partner of the United States. Both economies are interconnected and businesses on both sides of borders are subject to two-income tax rules of both countries. There is a Canada-US tax treaty that provides relief from double taxation.
Caution: US Income tax, both for individuals and businesses, is one of the most complex tax systems in the world. The below...
How and When U.S. Taxes Canadian Businesses
U.S. Income tax is one of the most complex tax systems in the world. Being a global leader, many times international businesses get their income connected to the U.S. and they even don’t know it. The first pain-point, especially for small businesses, is an inability to determine if they are subject to U.S. tax or not!
So, if you are looking for the answers to the questions like below,...
Infographic – Income taxes for US Amazon Store
During recent times there is an uptick in E-commerce sales, especially due to COVID-19 Pandemic. With closures of more and more retail stores, customers are ordering online. Amazon is one of the biggest online retailers in the world. Many Canadian businesses have a presence on Amazon, both Amazon Canadian Store and US Stores.
This post is for general purposes only and cannot be considered as...
How a US LLC is taxed in Canada?
What is a US LLC?
A Limited Liability Company (LLC) is a type of business entity that is created by a state statute in the US. This type of structure does not exist in Canada. You cannot create a Limited Liability Company in Canada, however, you can still use a US LLC to conduct business in Canada.
Generally, for tax purposes in the United States, an LLC with one member is considered a...
US Taxes for Canadian Snowbirds
What is a Snowbird?
If you are a Canadian and spend winter in the U.S. you may, unknowingly, become a US resident under the tax laws of the United States. So, now you are a tax resident of both Canada and the US. Snowbirds are the Canadians spending their winters in the United States.
When you spend winters every year for a prolonged period of time in the United States you may meet the...
FATCA Summarized
The Foreign Account Tax Compliance Act (FATCA)
The objective of FATCA is to prevent offshore tax evasion by persons and entities and it focuses on identifying the accounts held by US persons and entities. No doubt the purpose of FATCA is to serve as oversight to prevent unlawful behaviour and ensure better tax compliance.
Form 8938, Statement of Specified Financial Assets is filed by specified...