Cannabis, Income Tax and Justin Trudeau Question Hi I have a close friend that runs a cannabis dispensary in Vancouver and he’s doing quite well. He offered to help me open up my own dispensary with his help. I do have a few questions before I take him up on his offer and actually go…
New US Citizen in Canada video just posted! Hi everyone Just uploaded a new video to youtube explaining some requirements for US expats. Hope you enjoy!
IRS’s 2011 OVDI (Offshore Voluntary Disclosure Initiative) As many of you are already aware the Internal Revenue Service has launched (February 2011) a new Offshore Voluntary Disclosure Initiative. This initiative is similar to the 2009 Voluntary Disclosure Initiative, however some changes have been made. First, the IRS is has increased the non-disclosure penalty on the…
Moving your IRA to Canada – Podcast Transcript Cross Border Tax and Financial Planning Podcast Transcript Hello and welcome to Episode Number 1 of Cross Border Tax and Financial Planning podcast. Thanks for joining us, I’m your host Newsglobal and today we’re going to talk about how to move your IRA to Canada. Now there’s…
Common Questions Asked By US Citizens in Canada – FATCA and Tax Related We get a lot of tax and FATCA (Foreign Account Tax Compliance Act) related questions and I wanted to take the opportunity to outline some of the most common questions in an effort to help anyone who may have similar questions about…
New Streamlined Procedures for US Citizens Living In Canada If you’re a US citizen or green card holder living in Canada and have not yet caught up on filing your US tax returns now is a great time to take advantage of the IRS’s new streamlined tax filing procedures. Essentially the IRS is allowing non-resident…
New husband in the US – Tax implications Question Hello, I am a self employed Canadian and US citizen residing in Canada. I file Canadian and US income taxes each year on worldwide income with foreigh tax credits/exclusions. I am going to marry a US citizen who resides in Massachusetts (he is not a Canadian…
Should I convert my IRA before moving to Canada? Question Hello, I have a question…I’m planning on moving to Canada (I’m a US citizen) in the next few months and I’m wondering whether I should convert my existing IRA ($200,000) to a ROTH IRA or enter Canada and roll it into an RRSP. What are…
Do I pay US tax on interest earned from the US? Question Hello Phil, I have what I hope is a simple question. If a Canadian resident earns interest income on money invested in the US, does the Canadian resident then have to file US income tax? If so, is an ITIN number needed by…
Canadian company (BC) doing business in the US Question Hi Phil I own a BC corporation and I’m starting to do some business in California. I sell online goods to residents of California and I plan on expanding the business to other states on the west coast and perhaps the east coast if things go…
Should I incorporate my BC company? Question Hi I run a successful online marketing business in Vancouver that I have been involved with since 2002. I’m getting a lot of conflicting advice on whether or not I should incorporate by business. Let me give you some facts and perhaps you can point me in the…
How do I file my late US tax returns as a Canadian resident? Question Hello, I’ve lived in Canada for over 22 years and I haven’t filed a US tax return since I moved here (Ontario). Is the IRS going to want 22 years of tax returns filed? I don’t think I could even find…
RRSP payment to UK resident withholding tax? Question Hello, I moved from Canada in 2003 and left my RRSP in Canada. I’m planning on withdrawing $10,000 from the RRSP this year. How much Canadian tax will they withhold? Thanks for your time. XXXXX Answer Hi XXX Canada will withhold 25% of the RRSP payment at…
Withdrawal of RRSP as a US Citizen and Resident Question Hello, Just wanting to get some advice on withdrawing my RRSP to pay my house here in the US. I am a dual citizen living in the states. Worked in canada for 10 years, about 10 ago. Thank You for your time. Answer Hi XXX…
Left Canada and moved to US – Deemed Disposition Rules Question Great website! Here is my situation…please let me know if you can help. Thank you… I left Canada (XXXXXX) about 9 years ago (in XX) and moved to California, where I now live. When I left Canada, I filed my Cdn taxes for the…
Gambling Refund Disallowed by the IRS Question Phil, I know you don’t know me from a hole in the ground and I know you are out to make money but I thought I’d ask anyhow. I’m a XXXXXX in XXXXX but US Tax law isn’t my forte. I have had an ITN for more than…
5 Years of past due Canadian tax returns. Question Hi, I hope you can help. I’ve neglected to file my Canadian taxes for the last 5 years (please no lecture thanks….I know I’ve been bad)… I’m self employed and I’m finally caught up with all my bookkeeping records. I’ll be taxable in 2007 to 2009…
Gambling US Tax Refund for Canadian Question Hello Phil, I recently came back from a trip to Las Vegas where I won over $20,000 in winning on a slot machine (crazy since I never really gamble). The casino withheld 30% of my winnings and gave me a 1042-s form. I heard you can help me…
Worked in Canada for Olympics – US Citizen Question Hello Phil, I am looking for advice and hopefully you can assist me. Brief overview is I worked in Canada from Oct 2009 – March 2010 for the Winter Olympics. I filed the T1 through my tax accountant here in the states and did not receive…
How to make you mortgage interest deductible – David Ingram video I wanted to share this great video with everyone. In this video David Ingram answers a viewers email about how to make your mortgage interest deductible. Enjoy! Right now what I want to talk to you about is Mortgage Interest as a deduction in…
Reduce the amount of tax withholdings from you paycheque Question Dear Phil, I stumbled upon your website while searching internet for information on tax payments. My income tax is being deducted from each paycheck. My spouse is self employed and pays taxes once a year. Because of the nature of her business (real estate) she…
Foreign Tax Credit for Taxes on Swiss Tax Returns Question Hello, I lived in Switzerland for a few years and I failed to file my US returns. I’m a US citizen, currently residing in the US but I have been living in Switzerland for a few years. I’m currently catching up with my delinquent US…
US Citizen moving to Canada – Possible expatriation tax Question Hello Mr. Hogan, I’ll be moving from California to Canada in February of next year and I just wanted to get a sense for any tax implications that I need to be considering before I make the move. Let me give you some background of…
Canadian non-resident selling property situated in Canada Question I have owned a residence on Vancouver Island since 2003. I used it as a seasonal residence for myself and wife (our two sons were born in Canada) until 2007 when I took a Doctoral program in my field in Traditional Chinese Medicine in Victoria.for two years…
Moving to the US from Canada – Tax implications Question Hi Phil, Thanks for a well-written and timely article on US-Canada cross border tax issues. I am one of the many working professionals who is about to face the complications as described in your article (http://philhogan.com/cross-border-tax/tax-consequences-of-emigrating-leaving-from-canada/) A bit on my background: I am a Canadian…
Canadian gifting money to their US citizen Son Question Hello.. Can you please answer for me: I am Canadian, and my grown son lives in the USA, and recently became a US Citizen. If I “gift” him money (such as for a down payment on a house).. will he be required to report this on…
Canadian Corporation Doing Business in the US Question I am an accountant in [Canadian city] and have tried to call the IRS to determine what my client will require in forms and cannot get to talk to a person. I found your name on the internet and would gladly pay for your expertise in just…
US Citizen living in Canada going business in Canada and the US Question Mr. Hogan I’m 59 years old and a US Citizen and Canadian Permanent Resident. For the last 10 years, I’ve been an employee of a US Management Consultancy, working entirely in the US for US clients while residing in [Canadian province]. I’d…
Not filing for US purposes…in Canada for 48 years. Question Just had a call from my father about filing US tax returns. I am a US citizen who has lived in Canada for 48 years. I want to contact the IRS, as I just learned that I should have been filing tax returns in the…
Gift to US resident taxpayer (US Citizen) from a Canadian Parent Question Hello.. Can you please answer for me: I am Canadian, and my grown son lives in the USA, and recently became a US Citizen. If I “gift” him money (such as for a down payment on a house).. will he be required to…
Scientific Research and Experimental Development Program Canada’s Scientific Research and Experimental Development program (SR&ED) is a federally-funded program administered by the Canada Revenue Agency which, through tax-incentives like tax credits and cash refunds, rewards businesses of all sizes and in all business sectors for conducting scientific research and development projects. The Scientific Research and Experimental…
Tax Consequences of Emigrating (leaving) from Canada Can Canadians be subjected to tax consequences even after emigrating from Canada to the United States? According to the law firm Chang and Boos, a US-Canadian immigration law center, the answer is a resounding “yes.” In an article posted recently on the law firm’s website, one author wrote,…
Canada Revenue Agency Voluntary Disclosure Program The Canada Revenue Agency’s Voluntary Disclosure Program offers a unique opportunity for a “do over” for individuals who want to correct past mistakes or omissions on their tax returns. The following article summarizes the Voluntary Disclosure Program, including information on who is eligible and certain program limitations. It is…
Summary of the IRS Voluntary Disclosure and Amnesty Program The following article is a summary of the IRS Voluntary Disclosure and Amnesty program, specifically the new internal guidance procedure targeting those with foreign and offshore accounts. While the majority of this article’s information has been culled from the IRS webpage entitled, Voluntary Disclosure: Questions and…
How to deal with an IRS audit or review If you’ve received notice that the IRS is going to conduct a review or audit of one or more of your tax returns, you may experience several emotions, ranging from fear to guilt to even anger for apparently being singled out, but with a little more…
Victoria BC ITIN Acceptance Agent – Individual Taxpayer Identification Number As an IRS acceptance agent we can help you obtain an ITIN (Individual Taxpayer Identification Number) for US tax purposes. This will require the completion of form W-7 and a signature from our acceptance agent. Who needs an ITIN? Non resident aliens required to file…
How to Incorporate a Business in British Columbia Forming a business in British Columbia can be accomplished in one of three ways. The first is to file for a sole proprietorship, the model used by the majority of small business owners, the second is to form a partnership and the third—the model to be discussed…
Cross Border Tax Q&A – Canadian with UK Pension Question Dear Sir This year I am eligible to claim a UK state pension for myself and my wife (as a dependent). Over the last ten years, I have made voluntary contributions to the UK National Insurance, so as to maintain that eligibility for a pension….
Cross Border Tax Q&A – Giving up a Green Card and US/Canada Taxes Question Hello there My husband and I are planning on moving to Vancouver next year between October and December. My husband is a Citizen of the US and I am a Green Card holder. I’ll be receiving Social Security payment while in…
Minister Ashfield announces funding to help charities and protect Canadians The CRA will be providing almost 3 million in contribution funding for innovative education and training projects carried out before March 31 2011. The projects chosen will educate charities on complaint fund raising practices and about tax donation arrangements and false receipting, and will promote…
June 15 filing deadline approaches for self-employed individuals Self employed individuals and their spouses/common law partners have until midnight on Tuesday, June 15 to file their income tax returns. Any outstanding balances for 2009 had to be paid on or before April 30/2010. Click here to read more: http://www.cra-arc.gc.ca/
Cross Border Tax Q&A – Tax Forms For RRSPs in the US? Question Hi Phil My US accountant told me that my Canadian RRSPs are not taxable in the US, however someone told me that I need to file a TD9022 to report the RRSPs. Does this form exempt tax on the RRSPs? I moved…
The CRA revokes the registered status of the Canadian Lacrosse Association The CRA has revoked the Canadian Lacrosse Association as a registered Canadian amateur athletic association (RCAAA). RCAAA had the authority to issue donation receipts for income tax purposes but know they have been suspending by CRA. For issuing more than $60.7 million in donation…
Cross Border Tax Q&A – Dual Status Return when Entering the US Question Hi Mr. Hogan I’ll be moving to the US to take up a permanent job. I plan on getting my green card and remaining in the US for an extended period of time. I am aware of the need to sever my…
Cross Border Tax Q&A – Can I roll my RRSPs to an IRA? Question Phil I’ll be moving to California permanently next January and I wanted to get your opinion on a tax matter. Will I be able to “roll over” my RRSPs to an IRA (before or after I leave) into an IRA tax…
Cross Border Tax Q&A – Tax Consequences of Leaving Canada Question Hello Phil I’ll be leaving Canada after a long stay (11 years) to take a job in Seattle. I’m still a US citizen and plan on staying at the new job in the long-term. I’m aware that I need to file a final Canadian…
Cross Border Tax Q&A – Deduction of RRSP Contributions on 1040 Return? Question Dear Sir I’m a US citizen (born in the US) living in Ottawa, Ontario Canada. I’ve prepared my own Canadian taxes and US taxes (1040 income tax returns) for the last 10 years including the filing of foreign tax credits on form…
CRA Cracking Down on Non-Compliance I wanted to share the recent CRA news release regarding how much extra revenue CRA has obtained by auditing and reviewing individuals and businesses’ income tax affairs. The article also outlines some cases where criminal prosecution was levied. The quick lesson here is……file you returns on time and make sure…
Tax Q&A – US Citizen Living in Canada..Do I Need to File? Question Hi I just found out the other say that all US citizens need to file US tax returns. I’ve been living in Ottawa (from Seattle) for the last 10 years. I worked for the first 6 years, but have been unemployed for…
The History of the IRS Ever wonder when the IRS was first implemented or when taxpayers were first allowed to electronically file their tax returns? The IRS has posted a historic timeline of the history of the IRS. Take a read here: History of the IRS