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...
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...
Rental income tax for non-residents of Canada
Rental income is the income from renting of real or movable property in Canada which you own or have use of. Rental Income can be income from renting an apartment, house, offices or other shared spaced in building.
Canada taxes its residents on their worldwide income. If you are not a resident of Canada, you will pay taxes on your Canadian sourced income. Rental income from property in Canada...
Tax residency in Canada – Common Questions
Canada taxes its residents on the worldwide income.
When a person (individual) moves to Canada (Immigrate) or move out of Canada (emigrate) he is considered to be a part-year resident for tax purposes.
Part-year residents of Canada and their taxation
In Canada, part of the year when an individual is considered a resident of Canada is taxed on his worldwide income for that part of the year...
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...