New Postcard Sized 1040 for 2018 The IRS recently announced the new “simplified” 2018 1040 form. The new version of the 1040 replaces the older 1040, 1040-A and 1040-EX forms. Trump announced the “simplified change” to the 1040 last year, however many are not so convinced this new version will simplify tax filings for taxpayers….
If Bitcoin is a Scam, so is Canadian Real Estate With the significant price appreciation of Bitcoin and other related cryptocurrencies at the end of 2017, we saw the media and general public question the validity, valuation and future of these assets. Being involved in cryptocurrencies myself and advising on the tax implications for clients…
Ask your Cross Border Tax Questions Here… I’ve started this post to help those having trouble answering their Canada-US cross border expat tax and financial planning questions. Please leave your question in the comments and we’ll do our best to help answer. Also don’t forget to keep current on cross border tax and financial planning…
Disney Enjoying Increased Revenue amid Potential Fox Deal While Disney’s fiscal second-quarter earnings and revenue were stronger than expected, the company’s long-term outlook may ultimately depend on its highly-anticipated video streaming service (set to debut in 2019) and whether it can close a deal for assets belonging to Twenty-First Century Fox, according to analysts. In…
Startup “Sarwa” Bringing Innovation to Investment Planning The idea for Sarwa – a new low-cost wealth management firm which uses computer-generated algorithms – came to its co-owners after seeing numerous associates in the United Arab Emirates fall victim to fraudulent investment plans which benefited brokers at the expense of investors. Mark Chahwan, a Canadian entrepreneur…
Manitoba Investment Adviser Fined $485K for Stealing Wife’s Funds Gennaro Scerbo, a former investment adviser who worked for a branch of RBC Dominion Securities in Winnipeg, has been fined $485,000 – the largest fine in Manitoba’s history – by the Investment Industry Regulatory Organization of Canada (IIROC). Scerbo is accused of making “fraudulent withdrawals from…
Living in Canada with US Based Investments? Watch for Complex T1135 Reporting. Canadian taxpayers (including US citizens living in Canada) with US investments may need file CRAs T1135 foreign income verification form. The T1135 form is required whenever a Canadian taxpayer’s cost in foreign property is more than $100,000. Some exceptions do apply however as…
American Selling Property in Victoria BC – Tax Issues Question I live in XXXXXX, and still a Canadian passport holder, and am a permanent resident of the US. My property on Galiano Island is listed by Sotheby’s, and the home has been for sale since last October. We had an offer in February which in…
2017 US/Canadian Exchange Daily Exchange Rates Outlined below are the 2017 daily US-Canadian exchange rates for use in doing your taxes or foreign currency calculations. The full list of daily rates is included below as well as the 2017 average exchange and year-end exchange rates (can be used for FBAR purposes) for 2002 to 2017….
Podcast Episode #1 – Moving your IRA to Canada Episode #1 – Moving your IRA to Canada – Cross Border Tax and Financial Planning Podcast In this episode we discuss your options related to transferring your IRA or 401k to Canada. Options discussed include: Withdrawing the IRA as a lump sum Leaving the IRA in…
Canadian Non-Resident Tax Guide As a non-resident of Canada you are liable for tax and reporting for income earned from Canadian sources. This guide will walk you through the rules and regulations related to each type of Canadian source non-resident income. Non-Resident Withholding Taxes Non-residents of Canada are subject to withholding taxes on certain types…
Earning Bitcoin and Ether from the US – Canadian Consultant Question Hi I run a consulting practice in Vancouver and I have a few US clients. Once of my US clients pays me in Bitcoin and Ether (crypto currencies). I receive transfer payments each month. When I do my taxes for 2017 I need to…
How Do I Invest My Inheritance? Question Hi I’ll be receiving an inheritance from my grandfather who lived in Florida. It’s more money than I’ve ever had and I’m not sure how to invest the money. I’ve always been a good saver, but I’ve never had this much money. I’m looking for some guidance on…
Red Pulse ICO – Invested and Moved to Exchange for Sale Question Hi I see you’ve helped others with crypto tax issues, hopefully you can help me with my question. I recently invested in the new Red Pulse token ICO. I invested around $2,000 and I’ll be selling eventually once the tokens are listed on…
Federal and Provincial Governments May Split Marijuana Tax Revenue This week, Prime Minister Justin Trudeau discussed new plans for a potential excise tax on the legal sale of recreational marijuana, the latter of which is set to take effect on July 1st, 2018. “The proposal we put forward is $1 excise tax per gram, up…
Best Canadian Cities to Live In – 2020 ******** IMPORTANT NOTICE: Although moving to Canada can be a beautiful experience the tax and financial planning issues that arise can be both complex and difficult to manage. If you need help navigating the management of your US investments before your move to Canada please sign up…
American Moving to Canada – I Need Help! Question Hi there I’ve finished my paperwork with my immigration lawyer and we’ll be making the move up to Victoria in early 2018. She told me to ensure I got the advice of an international tax expert to sort out any tax issues I’ll be facing and…
Do I Need to Report my Bitcoins on my FBAR Forms? Question I actually live in Canada but I’m also an American that files US tax returns and FBARs each year. I have some bitcoins and Ether coins that I’ve accumulated over the years. The coins are spread between online crytco accounts like bitrex and…
US Doctor in Canada with Late US Tax Returns? Question Hi Mr. Hogan I’m a Radiologist that moved to Victoria over 5 years ago with my family. Both my husband and 2 kids have US citizenship and my husband is also a Canadian Citizen. I currently have my permanent resident card and will apply for…
How to Do Business in the US – Frequently Asked Questions We work with hundreds of clients a year that operate their businesses across borders. Canadian clients that are thinking of expanding their business operations to the US can face operational and tax challenges, however the business and financial rewards can be great. Being able…
Canadian Cities Entering Bid for Amazon’s Second Headquarters Amazon recently began accepting bids for the location of its future second headquarters, and multiple major Canadian cities – including Ottawa, Toronto, Calgary, and Vancouver – are joining the race. While Amazon’s primary headquarters is in Seattle, Washington, there are indeed some advantages for Canadian cities as…
Finance Minister Morneau Optimistic About Tax Reform, NAFTA Talks Despite the rising Canadian dollar and uncertainty surrounding NAFTA negotiations with the U.S., Finance Minister Bill Morneau is cautiously optimistic about the positive state of Canada’s economy. So far in 2017, the Canadian dollar is up 10.7% against the U.S. dollar. Morneau spoke from Ottawa to…
Canada Reclaims Top Spot in U.S. Real Estate Investments Canada consistently ranks high among foreign investors in the United States, and has again surpassed China as the number-one investor in U.S. real estate. According to a new report from commercial real estate firm JLL on the first six months of 2017, Canada’s investments in U.S….
ROTH IRA Election – Income Tax Technical News no. 43 The rules related to how you actually make the ROTH IRA election are contained within CRA’s Income Tax Technical News no. 43. To read the entirety of the technical guide please click the image below:
ROTH IRA for Canadians and Newcomers to Canada This post was created to give some information, perspective and strategies to those Canadian residents that currently hold ROTH IRA accounts either within the US or in Canada (through a designated Canadian broker able to manage US assets). If you need help moving your IRA to Canada…
Can I Extend my US 1040 Income Tax Return Past October 15th? Question I’m a US citizen living in Canada that has yet to file his US tax return. I was told by a friend that I could have until December 15th, 2017 to file my return. However I can’t find any information online about…
OPTrust Remains Confident in U.S. Investments Despite various political risks in the U.S. in 2017, the “strong foundations” of its economy continue to inspire confidence in Canadian investors, according to Hugh O’Reilly. O’Reilly is the President and CEO of OPTrust, which oversees one of the largest pension funds in Canada. OPTrust manages over $19 billion…
Inherited IRA from Father in the US. What are my options? Question Hi Phil I inherited a fair sized IRA (over $600,000) from my US citizen father who resided in the US for over 30 years. My current Canadian broker is suggesting that I collapse the IRA and transfer a portion to my RRSP. The…
Capital Gains Tax on Bitcoin and Cryptco Currencies – Trading and Investment Issues Question Hi I’m an American living in Canada and I see that you help people with Canadian and cross border tax and investment issues. I need some help in this area. Early on in the evolution of Bitcoin and other cryptocurrencies I…
Moving from California to BC – IRA to RRSP Issues Question Hi Mr. Hogan I moved up to Canada from California last May. My current Canadian broker is suggesting that I transfer my IRA to a new RRSP. Based on his calculations I can only transfer 40% tax free. The remainder will need to be…
10 Things to Know Before Moving to Canada from the US 1. US Citizens File Taxes Even When They Live Outside the US US citizens moving to Canada will still be required to file US taxes even though they no longer reside in the US. Tax filings will be required based upon their US citizenship…
Transcript – Saving tax by moving US based in investments to Canada Transcript: Saving Tax on moving your investments to Canada from the US. Here’s a small strategy that some people don’t take advantage of when trying to save on overall tax from a portfolio standpoint. If we imagine a situation where an individual has…
Transcript from conversation regarding Cannabis industry trends and tax Recording #1: Information on investing or incorporating on a Cannabis-related company. As most of you know, the federal government plans on legalizing Cannabis in 2018. We don’t have full regulations as of yet and they’ve left it to the provinces to regulate the distribution of Cannabis…
Frequently asked cross border tax and financial planning questions He get a significant amount of questions on the site. Unfortunately we are not able to answer everyone’s request. Make sure to also post your questions on our cross border tax and financial planning forum. We have many professionals available to help answer current queries. We’ve…
Question Related to non-resident property sale by American Dear Mr. Hogan, I seek your guidance. I am currently on XXXXXXXX and once the international ferry starts up again after 4 November, I could come to your Victoria office. Or perhaps you do consults by phone, email and FAX. I need: 1) a determination of my current…
Starting a Business in Vancouver, Need Some Advice on an Appropriate Structure Question Hi Phil I’m starting an application and gaming company with 2 close friends of mine in Vancouver. We’ve been told on multiple occasions that going into business with friends is a big mistake. But after looks of discussions we’ve all decided to…
Is your corporation at risk of being deemed a personal services business (PSB) by the CRA? If your corporation is deemed to be a personal services business (PSB) your corporation is no longer eligible for the small business deduction (SBD) and its income is taxed at full corporate tax rates. For 2016 the B.C. corporate…
Family Income Splitting for Doctors – A Significant Income Tax Saving Strategy Our physician clients are some of the higher paid professionals in BC. Some making well over $500,000 per year. At these income levels average tax rates can be over 40%. For those that plan properly significant tax savings can be obtained by allocating…
Moving to BC with Lots of Money and Assets – Things to Consider Question I’m moving to Victoria BC at the end of the year and will need to setup a consultation to discuss my financial and tax situation. I thought it best to outline my situation before meeting so you could get some context…
Disclosing Offshore Investment Accounts to CRA – Don’t Let CRA Find Them First. I met with a client a few weeks ago that needed some advice on whether or not to disclose his Swiss offshore investment accounts. I was reminded again by how important it is for Canadians to ensure they not only report income…
CRA Foreign Tax Credit Review – Please Help! Question Hi Phil I’m dealing with a CRA review of my T1 foreign tax credit claim and it’s driving me nuts. Hopefully you have a good idea on how to fix this mess. Here’s the situation. I lived in the US for a few years and during…
QA – Rolling over RRSP to IRA or 401k? I am a Canadian living in the U.S. I have two RRSPs, one is a personal plan and the other is a locked-in account from my previous employer’s pension plan. Can I transfer (roll over) my RRSPs into an account in the U.S. without being penalized?…
Leaving Canada with Lots of Disney Stock – Tax Issues? Question Hi Phil I recently stumbled across your blog and I think you may be the right guy to answer my questions. I’ll be leaving Canada permanently to work in California (I’m also a US citizen) for a small start up venture. Other than a…
5 Signs You Need To Find a New Accountant You should hold your accountant to a relatively high standard as it can get quite expensive to engage a competent CPA. In most cases however that would be money well spent as your tax, accounting and financial well-being is extremely important. In cases where you’re not…
How to File Late Corporate Tax Returns? Question Hi I started a contracting company in 2012 and incorporated in 2013. The company has become relatively successful however I’ve neglected to file tax returns for each year. I want to ensure I don’t get in any more trouble with the tax department and I would like…
How to Transfer my IRA to Canada (or into an RRSP)? Question Hi Phil I moved to Canada in 2008 from Texas. I still have a sizable IRA in the US and in order to simplify my life I would like to move the account or funds up to Canada. Of course, I would prefer…
American Doctor Moving to Victoria BC Question Hi, I’m a radiologist that will be moving up to Victoria in the summer to work on contract at the general hospital. I’m concerned that I haven’t properly planned for the tax consequences of the move. I can outline in general terms my situation and perhaps we can…
Should I Incorporate my Business? Question I’ve spoken to 2 separate accountants lately and each of them gave me different advice. One guy said I should definitely incorporate my business and the other guy said I should wait until my income increases. My net profits each year are around $150,000. Thanks XXXXXX Answer Hi XXXXX…
How to Start a Business in BC If you’re interested in starting a business in BC you’ve come to the right place. Living, investing and building a business in BC can be a challenging but very rewarding experience. The steps to starting a business can vary but I’ll outline some basis steps and considerations when…
If Trump Wins I’m Moving to Canada! – But What About Taxes? Not many thought he could get this far through the election cycle, but as Donald Trump secures the Republican nomination many Americans are seriously considering a long-term move to Canada. Unfortunately for most Americans a move to Canada may not be as simple…