All About Taxes

The United States and Canada have a close monetary and cultural ties due to proximity. It isn't surprising that citizens from both countries proceed to each other's country to get, study, conduct business, work or even to retire. Both national countries, the U.S. and Canada, have very unique system in taxation. Thus, they decided on the US-Canada Duty Convention authorized in 1980 or even more commonly called as the Taxes Treaty.

Filing US Taxes From Canada

The Duty Treaty addresses the foreign taxes credits which can be purchased in situations where each country claims the right to taxes the same income. Cross-border taxes Canada-US, through the precise tax laws transported by the Taxes Treaty, protects people from double taxation. In addition, cross-border duty Canada-US navigates through duty requirements for both Canadian and US interest, getting and holdings. US fees in Canada include personal and business fees, income from deal of properties and real estate taxes and rentals income. Each one of these require expert controlling to ensure legal fees are paid and fines are avoided.

Aside from steering clear of "twice taxation", the Duty Treaty and other amending protocols increases copper ration between your two countries also. The 5th protocol to the Tax Treaty was made to remove source-country "withholding" tax on cross-border interest payments. Carla Pehowski, older duty counsel, U.S. Taxation, RBC, records that, "The best advantage of eradicating withholding duty on cross-border interest repayments is the fact that cross-border businesses will have significantly more overall flexibility in choosing and dealing with their bankers" She further offers, "Any try to centralize all financing in Canada would cause a question by the lender for reimbursement of withholding taxes on any interest credited from the U.S. debtor. There's a complete layer of complexness and potential charge that will go away in the foreseeable future cross-border lending options." The 5th Process also contains allowing taxpayers arbitration to often insolvable double duty issues and making certain immigrant gains don't have double taxation.

In addition, here are some things you should know about fees:

1. Know which cross boundary forms you will need to document to the inner Income Service (IRS). US fees in Canada is from the IRS through the Canada Earnings Agency (CRA). Problems in getting ready these comes back can bring about penalties, taxes costs and interest obligations.
2. Deadlines are essential. Taxpayers who live have different deadlines than US overseas. Citizen moving into the U.S. Unless you meet these deadline, it could be quite costly.
3. Be sure you have a reliable cross border taxes specialist.

 

Read more »

What can We Expect From CROSS BORDER TAX SPECIALIST

Cross border tax preparation can be overwhelming, stressful and complicated. If not done correctly, it can be costly too. Getting assistancein cross border tax service is the best way to do to avoid headache in preparing your own tax return. For Canadian-based company doing business in the U.S., for example, “it’s important to obtain the advice of a cross border tax specialist not only on business structure and international banking considerations, but on legal and taxation issues,” notes Jana Henderson, director of Global Solutions, RBC. There are pre-tax and post-tax questions into their business case discussions that a cross border tax specialist can answer.

 

Here are a few things you should expect from cross border tax specialist:

1. Your tax preparer specializes in cross border tax returns. There is a difference between a U.S. tax return and a U.S. Cross border tax return. It is quite understandable that the same goes for a U.S. tax preparer and a U.S. cross border expert. Federal and state return are filed by a U.S. tax preparer, while a U.S. Cross Border tax specialist has the expertise to prepare your U.S. return including preparations of any mandatory cross border information forms that are required for the Internal Revenue Service (IRS) and the Department of Treasury if you are living overseas. Cross border tax services need to done correctly, and your cross border tax specialist assures that it can be done.
2. Filing of correct return. Cross border tax specialist finds out which forms apply to your particular situation. If your tax preparer does not accommodate vital forms and return types, you are at risk at filing incorrectly. Errors in these returns or not filing proper forms can result in tax costs and penalties. Keep in mind that some tax forms may or may not apply to you. The forms your neighbor used may not be useful to you. Make sure that your cross border tax specialist knows your case so he can identify the correct form for you.
3. Continued learning. It is important for a cross border tax specialist continuously improve their knowledge and skills through continued education. Continued education provider must be approved by the IRS. The IRS Continued Education program consists of in-depth training and exams which take place every year. This program ensures that the tax preparer is fully equipped and can keep with the changes in tax laws.
4. Professional and can meet deadlines. Aside from meeting the deadline, a cross border specialist makes sure you’re in compliance in preparing your cross border return correctly. A cross border specialist must be able to claim the treaty exemptions and benefits applicable to your tax situation.

Cross border tax services is very complex and the laws are constantly changing. Having a cross border tax specialist, makes it manageable.

Read more »

Finding The Right Cross Border Tax Specialist

Taxation can be one of the most stressful and complicated part of moving to another country. Fortunately, for U.S. and Canada citizens, there is the Canada-United States Tax Convention signed in 1980. The tax treaty between the two neighboring countries is to prevent double taxation of their citizens who live and work to the country next-door. For example, Canadian residents who have income from the United States benefit from this tax treaty. They need to know the rules for filing taxes and how to lessen their withholding taxes in the U.S.

The tax treaty also aims to provide relief from taxation in both the U.S. and Canadian citizens.Canadian and U.S. residents are taxed on their world income. Both report their foreign income no matter where they file a tax return, whether in Canada or in the United States. Because of the treaty, Canadians may pay the U.S. tax on their U.S. income to the Internal Revenue Service (IRS) without having to pay again to the Canada Revenue Agency (CRA).

Those who need to file cross border tax Canada-US may find their predicament complicated. That is the reason why they need cross border tax specialist. A cross-border tax specialist will guide you through the minefield of double taxation. Ensuring you only pay the legal requirements is taken care of by a cross-border tax specialist.

 

Cross Border Tax Canada-US

Finding the right cross-border tax specialist is important. Here’s a few tips you may want to consider: 

1. Expert in income tax estate-planning issues faced by individual American and Canadian expatriates living in their neighborhood country.
2. Offers corporate tax services to businesses opening cross-border branches.
3. Offers consultation services to those who want to open businesses in the U.S. or Canada.
4. Gives advice on entity structure for corporations, partnerships and sole proprietorships transitioning from one country to another.
5. Provides confidential services to lawyers, accounting firms, and other financial professionals who can benefit from their international tax expertise.
6. Compliant to legal requirements and rules of law.
7. Helps in assessing the factors that are important in filing your taxes.
8. Works toward finding a solution that fits your specific needs.

Just because your neighbor or a friend structured their property ownership one way, does not mean
that it can work for you too. Filing of taxes should suit every individual. Getting the services of an experienced cross border tax specialist is worth every cent. It makes life easier for you.

Read more »

Cross Border Tax Services and More: 5 Reasons Why You Need a Business Accountant

From frequently changing tax laws to complicated cross border tax services planning, preparation, and filing, there are no two ways about it – whether you are a small start-up just getting off the ground or a relatively well-established business, you definitely need a dedicated business accountant.

Here are some of the reasons why you need a business accountant (that go beyond being a cross border tax specialist:

• Improve your credit rating. Paying your bills on time helps improve your credit rating. Having a dedicated business accountant who will keep track of your payment deadlines to make sure you are on top of things is absolutely important.

• Help you manage your finances. Not all of us are great with numbers. Sure, we might understand the big picture side of things, but when it comes to the nitty-gritty of finance, an extra pair of expert hands is a big help. A business accountant will help you with the leg work of managing your finances and looking over your numbers so you have more time to focus on the big picture – like implementing a strategy to grow and expand your business, for example.

• Help you with cross border tax services. As mentioned above, a business accountant can also serve as your very own cross border tax specialist. This role is invaluable because this person will help you keep track of changes in tax laws, help you maximize the tax benefits available to you, and dedicate their time and effort to help you with cross border tax planning and preparation, among other things.

• Save you time and money. Having a business accountant will be able to save you time simply by virtue of assuming financial responsibilities that used to be yours and taking them off your plate. On the other hand, a skilled business accountant will not only save you time but also save you money – a lot of money – by virtue of helping you in planning your taxes and providing you with expert advice when you’re making decisions regarding the finances of your business.

• Plan for the future of your business. This is, arguably, one of the greatest benefits of having a business accountant. A business accountant will not only help you in the day to day finances of your business (and the dreaded tax planning and filing), they can also give you that much needed advice when you’re trying to plan the direction in which to take your business next. A business accountant can help you make informed decisions about your business’ future by help you take a step back and look at the past and current situation of your business.

Needless to say, having a business accountant is a must these days, especially with the global economy that has made the issue of cross border tax and investments that much more complicated. If you are a business looking for growth and expansion or, at the very least, maybe improve the delivery of your services and smoothness of your operations, a dedicated business accountant is one of the most important individuals you need to have in your organization.

Read more »

4 ways a Cross Border Tax Specialist can help you with Cross Border Tax Services

Let’s admit it, nobody enjoys filing taxes. It’s a stressful process that, if given a choice, most businesses and individuals would prefer to delegate to someone else who has more experience with its ins and outs – a specialist or an expert, so to speak - and this is especially true when it comes to cross border tax services between the US and Canada.

Here are four ways how a Cross Border Tax Specialist can help you with Cross Border Tax Services:

• Provide you with much needed expertise. Cross Border Tax is complex and it can be very daunting to someone who is unfamiliar with the myriad laws applicable for US and Canadian individuals, corporations, partnerships, estates, and other entities. A Cross Border Tax Specialist will provide you with the much needed expertise on cross border tax issues.

• Keep track of changing tax laws. Tax laws are frequently changing and whether you’re an individual working across US and Canadian borders or a Canadian business owner investing in the US or vice versa, it’s practically impossible to keep track of the changing laws and requirements on top of everything else that you need to deal with in your everyday activities. A Cross Border Tax Specialist will keep track of these changes for you and update you as necessary.

• Devote 100% of time and training on cross border tax. Cross border tax services from a specialist – or a team of specialists – offers you full time help in tax planning and preparation. This is not someone merely working on cross border tax services on the side or on a part-time basis. A cross border tax specialist devotes one hundred percent of their time and training on cross border tax services so you can rest assured that your taxes are being handled by someone who knows and understands the process like the back of their own hand.

• Maximize tax benefits. There are a number of tax benefits available to employees and business owners, however, most of these benefits are available only when taxes are done in a timely manner, otherwise, the benefit is lost. Of course, when you have to juggle all of your responsibilities, often taxes are pushed to the back burner until we’re almost out of time. By having a cross border specialist dedicated to this task full time, you can make the most of these benefits because you are assured that your taxes are prepared and filed in a timely manner.

Filing and preparing taxes can be challenging – even difficult, for some – but this does not have to be the case for you. With Cross Border Tax Services, a complicated and stressful tax-filing process is a thing of the past. You can focus on doing your work or managing your business and investments, while a Cross Border Tax Specialist dedicates their time and effort to manage this process for you.

Read more »

Complications of US and Canadian Tax Laws

The United States and Canada each has very distinctive systems of taxation. This called for both countries to sign the Tax Treaty. The rules on cross-border taxation between the two nations are covered in Article XXIV of the US – Canada Income Tax Convention, 1980 (Treaty). This treaty ensure residents of each country is not taxed by each of the two countries on the same income in the same year. However, residents from both countries are faced with challenges determining the US and Canadian tax laws. Filing US taxes in Canada is no easy task.

Cross Border Tax Specialist

• Tax obligations

        The US Foreign Account Tax Compliance (FATCA) has become part of the 2014 federal budget and recently became Canadian Law. FATCA requires Canadian financial establishments to send information of their US account holders to the Canada Revenue Agency, which in turn, will send the data to the Internal Revenue Services (IRS). Overdue tax returns should be a priority to avoid penalties and the IRS chasing you.

• Dual Citizenship and Taxes

         Obligations of Canadian taxation are based on residency status. Canada Revenue Agency (CRA) have guidelines and interpretations on the subject. The CRA reviews information on your residential ties to Canada, your place of residency, length of stay in Canada and a number of other factors to make its summary. Based on that result, you could be taxed or not.

         Complications usually arise if you are a citizen of another country, like the U.S., and classified as a Canadian resident or with dual Canadian citizenship. They are taxed based on their worldwide income regardless of their country of residency. But because of the tax treaty, residents of both countries get provisions and relief so they pay in one country and receive credit in the other for the taxes paid.

• Investments

         Many Canadian residents have been investing in Registered Education Saving Plans (RESPs) and Tax Free Savings Account (TFSAs). These investments are tax-free that grow within their accounts. This result in complications for Canadian residents who are also U.S. Citizens. These investments can be costly for U.S. tax purposes and do not provide the tax benefits under U.S. tax rules that do under Canadian tax rules. They do not get special treatment under U.S. domestic tax law or under the Canada – U.S. Income Tax Convention, which is why, the income generated by these accounts is taxable to the investor.

Another complication is that IRS considers RESPs to be foreign trusts, which means individuals must need to file IRS Forms 3520 and 3520A on an annual basis. Foreign trusts returns are complicated to prepare and compliance to these can become very costly.

Paying US taxes in Canada, despite complications, can be very beneficial. It actually guarantee you a good record of paying your taxes. US taxes in Canada, in addition, are protected by the rules of the treaty so it doesn’t have to be too difficult. For those with financial circumstances like filing taxes in Canada, there are quite a number of distinguished cross-border tax team who specializes in these scenarios.

Read more »

What a Cross Border Tax Team Comprises of?

There are instances where citizens buy, invest, work or move frequently across borders and have to pay taxes and make tax declarations in two or more countries. This is often the case for workers posted abroad, retired persons abroad or for people living in one country and working in another (cross-border). Each country has the right to impose its own tax rules, they may establish the tax rates that they wish. There are arising cross-border tax problems faced by individuals who are in this circumstance. Being overseas, individuals should be aware that different countries make sure that taxpayers meet their tax obligations.

A cross border tax specialist has the astute legal mind on cross-border structuring in terms of taxation. They can bring valuable cross-border experience and knowledge to sophisticated cross-border specific tax laws. Cross border tax specialist help international clients to achieve the significant tax benefits through their high expertise of the cross-border regime regarding residence and domicile. Moreover, cross border tax specialist understand the U.S. federal and state taxation laws and their interaction with Canadian tax principles, thus the resolution of cross border tax Canada-US.

WHAT A CROSS BORDER TAX TEAM COMPRISES OF?

• A personal relationship with clients

       They should work collaboratively with you to develop the right approach and solutions. Building a relationship is built on trust. They should actively participate on the team and be able to prepare complex personal and business tax returns. A strong commitment to client service is also important.

• Professionalism

         Cross border tax specialists must have completed accounting designation, preferably worked with US expatriates resident in Canada and cross-border business taxation. They have the ability to work in teams and alone in a fast-paced work environment managing multiple deadlines. Their ability to organize complex information to support research and tax preparation requirements is very helpful. They should have excellent analytical skills with the ability to identify issued and initiate their resolution on cross border tax Canada-US.

• Excellent time management skills

          Tax period is crucial. It demands an excellent time management skills where the cross-border tax team can workaround the schedule of countries on filing of taxes. They must be be able to meet the deadline and submit the proper supporting documents. Every client should be a top priority. They cannot be lenient because filing of taxes is under the rules of law and cannot be ignored nor delayed.

• Focus on details

          Taxation is about numbers. Strong attention to detail is highly required. A small mistake in computation or the number of days may have a negative effect on filing of your taxes. When they are focused on the work at hand, they can interpret US and Canadian tax laws and regulations and ensurethat any necessary charges are made to clients’ tax strategies and filing obligations.

• Confidentiality

          The cross border tax specialists must diligently protect their clients’ personal information. Failure to properly protect and secure confidential tax-related information could harm you. If cross border tax team practice confidentiality and give it a high priority in their relationship with clients, they can gain their client’s trust and confidence.

Read more »