Are you considering a relocation which involves the US? If so, you should be aware of the changes to the rules for the moving expense deduction and the treatment of moving expenses which are reimbursed by your employer. Public Law 115-97 (“HR.1”), formally known as “an Act to provide for the reconciliation pursuant to titles […]
RENTAL INCOME REPORTING As a Canadian resident investing in Canadian real estate, you will have to report your worldwide income to the Canada Revenue Agency (“CRA”). This includes rental income from Canadian real estate. The CRA allows deductions for related expenses, such as insurance, mortgage interest, property taxes and repairs. A deduction for tax depreciation […]
I was surfing the internet and came across an article that said I had to report my US real estate to the Canada Revenue Agency (“CRA”). This can’t be right, so I called my tax advisor and she told me that was in fact true in certain circumstances. She went on to tell me that […]
There are many Canadian companies that have been doing business in the US for years and never reported their sales or service activities to the federal or state governments. Very few are completely oblivious to the requirements. However, the majority are aware that they need to, at the very least, do something. Instead they sit […]
– US Tax and Reporting Obligations – How They Stand Today Every year, Americans abroad pay thousands of dollars to file taxes in two or more countries which apply tax treaties that will often (but not always!) offset any balance of US taxes due. While accountants make money from obliging expats and IRS agents review […]
With increased collaboration between friendly nations, CRA is working to deter and identify those who participate in off-shore tax evasion. Independent agreements to assist each other are coupled with a membership in the Joint International Taskforce on Shared Intelligence and Collaboration (JITSIC). The information exchange has supplied data on off-shore accounts for years now but […]
On November 2 the Joint Committee on Taxation released the proposal for the tax reform bill H.R. 1, The Tax Cut and Jobs Act. It appears that the reform does not eliminate or simplify the Code to the extent we had hoped. On the contrary, certain provisions, as the proposal stands, will result in additional […]
US expatriates in Canada and Canadians in the U.S. need to remember that the border, when it comes to tax obligations, may be closer than they think. The income tax treaty (the “Treaty”) between the US and Canada allows for Canada Revenue Agency (“CRA”) to collect tax, interest, and civil penalties from delinquent US taxpayers […]
“It’s really American to avoid paying taxes, legally” – Lindsey Graham Let’s face it, penalties can be painful. However, they can serve a valuable purpose in motivating people to do the right thing. Whether we’re discussing filing accurate returns, making the proper payments or simply watching the calendar for due dates, full compliance with tax […]
It appears almost 13% of all foreign property owners in various counties of California, Florida, Nevada and Texas aren’t reporting rental income on their US properties. Chances are they aren’t paying the associated taxes on that money either. That is what a recently released yearlong investigation by the Treasury Inspector General for Tax Administration (TIGTA) […]