Cross Border Tax Consultants

    Canadians love the warm weather of Florida and California. This is the reason lot of Canadians do own the properties in the U.S. If they are not living there, they are holding it for investment purposes. There are many income tax issues Canadians should b aware of while selling their U.S. properties. For a detailed information on the tax issues involved with sale of U.S. properties, read here . • Under Foreign Investment in Real Property Tax Act aka FIRTPA, the buyers are required to withhold 15% of the sale price and remit to IRS. There are exception involved, for more details refer to the link mentioned above. • A U.S. ITIN also known as US TIN or individual income tax number is needed whenever a US property is sold to ensure withholding taxes are credited to right account by the IRS. An ITIN is also needed when the seller want a reduced withholding rate. • Seller must file a U.S. federal tax return. For this purpose form 1040NR is used to report gain or loss. FIRTPA...

Should I incorporate my small business in Canada? When should I incorporate? I was told I could save tax if I incorporate – is this statement holds true? What are the advantages & disadvantages of incorporating your business? Benefits of incorporating your small business: Let’s start with a list of the pros of incorporating your small business in Canada. • Limited liability – Running your business through a corporation gives a safety layer against personal liability. It makes it more challenging for someone to go after your personal assets if the business defaults on its debts. • Tax savings & deferral – In some circumstances, corporations have a lower tax rate in comparison to individuals. Running your business via a corporation in place of a proprietorship can aid to defer and save taxes. • Estate planning – A corporation is a detached entity to you, so it persists to live on irrespective of what happens to you. This can be useful when thinking about transferring your...