Cross Border Tax Consultants

Are you confused about Canadian Income Tax Rules? Should you be reporting your foreign rental income in Canada? Well, let us find out. Regarding reporting rental income for Canadian income tax purposes, foreign and domestic rental income are regarded equally. A Canadian taxpayer must therefore reveal all of their worldwide income. What if the cost of foreign properties is more than $100,000 CAD? Then you must fill out the T1135 form, which is also known as the foreign income verification statement. Continue reading to learn more.     How to Report Foreign Rental Income? • To report your foreign rental income while filing income tax returns in Canada, fill out the T776 Form, also known as the Statement of Real Estate Rentals. • Keep in mind that your international rental income must be reported in Canadian dollars • To avoid double taxation, income taxes paid to the foreign jurisdiction on rental income can be claimed as a foreign tax credit on the taxpayer's Canadian incom...

  Are you confused about whether to hire a lawyer or accountant to complete your Voluntary Disclosure Program? What if we tell you that you don't need them? But before getting into that, we need to learn more about the CRA's Voluntary Disclosure Program. Read on to know more. What is the Voluntary Disclosure Program? Many people make errors, intentional omissions, or misreporting regarding taxes. If you happen to be one of those people, there's a way around it. There is a chance that you will be treated fairly by the Canadian tax system. Through the Voluntary Disclosure Program (VDP), run by the CRA, you get a second chance to fix any inaccurate or late tax files. The voluntary disclosure program allows taxpayers to make changes to their tax affairs. VDP lets you correct your mistakes of the ten prior taxation years. Additionally, VDP aids in shielding non-compliant taxpayers from legal action. If you need to file pending tax returns with the CRA or correct prior tax file...

Worried about filing your income tax returns? Did you forget to consider your foreign rental income? Now you are worried about the penalties. What if we tell you that there is a way around it? So, can you really avoid penalties on T1135 late filing? Read on to learn more. What is the T1135 Form? The CRA, short for the Canada Revenue Agency uses the T1135 form to obtain information on the number and income generated through foreign assets that are held by the residents of Canada. Form T1135 is also known as Foreign Income Verification Statement. Who should Fill it? You must file the T1135 form, also known as the Foreign Income Verification Statement if you own foreign property worth more than 100,000 Canadian Dollars at any time during the year. This is applicable to all individuals, trusts, and partnerships. When completing the foreign income verification statement, you must consider the property's cost rather than its current value. An individual need not complete the T1135 f...

Investors often think twice before funding start-ups, so your business plan has to be exceptional to impress them. But if your pitch deck fails to get the much-needed funding from investors, there must be something wrong with your business plan. Here are the reasons why a business plan might fail to get the investors' attention: Unrealistic Assumptions It's good to be optimistic about your businesses' future and present it to investors. But, you should be realistic as that's what makes investors genuinely see the potential of your business and fund for it. Financial projections and cash flow statements should be presented accurately to get funded. Explaining sales forecasts without complete information can be a red flag for investors. You need to focus more on cash flows and not just profits while presenting your business plan. Using Business Plan Templates If you've used ready-made templates for your business plan, that can be another significant reason for your...

Planning to set up a business in Canada? Canada welcomes many entrepreneurs, but you can set up your business if your business plan is approved. A solid plan will help you immigrate to Canada as an entrepreneur under various governmental programs. You need to go through several steps before your application gets approved. For one, before writing a business plan, you may have to write a business concept and get it approved. Your business concept will be your initial draft of the business, and if it fits well with the Canadian market, you can get started with your business plan.   How to Immigrate to Canada as an Entrepreneur? Each province in Canada has its own guidelines to set up a business. Additionally, depending on your business type, you may choose either a provincial or federal setup. Go through the procedures carefully on the official website and see what is essential to include in your business plan. They have also laid out your business plan's details, so go through th...

As an entrepreneur, your business plan is what drives your business. Having a well-crafted business plan can help you nail your pitch deck. Writing a business plan is a daunting process, but it doesn't have to be when you do your research well. Your business plan will include your goals, summary, financial projections, and a lot more. So, if you're planning to go the entrepreneurial route, getting your business plan right should be your first step.     Importance of having a business plan You may find it unnecessary to write down a detailed plan when you can get experience and learn from your mistakes. But that's where it can all go wrong. Having an idea is excellent, but you need to strategically write down how to bring it into reality. Spend a little time, and you will not regret writing a plan. In fact, it may even speed up the process of creating a pitch deck when you're ready to get funding from investors. So, never think twice or procrastinate about writing a bu...

A business plan is basically a road map that a brand will utilize to reach its objectives. A well-composed business plan employs imagination and experience and is based on real data to be truly effective. Although it may look like something that anybody can manage, it takes a particularly competent individual to prepare a business plan that gets the point across without being too vague or too wordy. Here are a few reasons why you must hire an expert business plan writing service : Vital to the success of a business: Business plans will address things such as a business’s profitability & growth, alongside many other major concerns. Business plans that are well thought out & written clearly can be employed as a guide for luring new investment & financing. An ideal business plan will accentuate all facets of the way an organization operates – encompassing production, marketing growth, and sales. It’s essential for a business plan to provide a complete approach to the core und...

When it comes to moving to a foreign country, there’re many tax concerns that has to be reassessed which could significantly impact your cash flow position at the move. Every resident of Canada is subject to Canadian income tax on his or her own worldwide income. That means that a Canadian resident has to report not just their Canadian source income, but also all other sources of income from outside Canada. When emigrating from Canada , you will become a non-resident of Canada by filing a final Canadian income tax return for the year of emigration, also known as emigrant tax return. If this is the scenario, you’d no longer be needed to pay income tax on any income that are foreign sourced O(after emigration). You’ll still be needed to pay Canadian income tax on particular Canadian sourced income, which will be dependent on the country in which you want to dwell and the treaty between that country and Canada.   Filing a departure income tax return for the year of immigration can be...

  An LLC (limited liability company) is created under the state laws in the United States. Limited liability companies (LLC) offer its members liability protection while offering the benefits of being fiscally transparent. Fiscally transparent entity means that income is not taxes at LLC level, but it flows to its members and taxed at the personal level. The LLCs are America’s favorite business structure, so much so that, local accountants in the US tend to recommend to everyone. Sometimes, they recommend it to residents of other countries without knowing the income tax consequences on those taxpayers in their countries. Many Canadian taxpayers often go ahead an set up an LLC in the U.S. without knowing the serious income tax issues. An LLC is treated as a corporation in Canada whereas a flow through entity in the U.S. Since Canada does not see an LLC as a fiscally transparent entity and consider it a corporation, the income of LLC is not included in the personal income of its...

Investor pitch deck is a critical document used to pitch investors. Remember, you get only one chance to present your idea to investors so make sure you have prepared a killer pitch deck.   A typical pitch deck contains below slides: 1. Brief overview of the company: Start with presenting a brief overview of your company. 2. Mission and Vision of your Company: Carefully drafted mission and vision gives a quick insight into your company’s short term and long term goals and objectives. 3. The Problem: You must state a problem. Without presenting a problem you cannot pitch your idea. 4. The Solution: You must propose a solution to the aforementioned problem 5. Market Validation: Present that there is enough market where your proposed solution can work. Explain about the market opportunity. 6. Competition and differentiation: Present your existing and potential competitors and explain how your proposed solution offers a differentiation. Identify the key competitive advanta...