Canada | TaxConnections

26 Feb 2018

I Didn’t Receive My IRS Refund Check And My Address Has Changed

Note that IRS will mail you notices and/or a check to the most recent address that it has on file for you. Of note:

Nowadays IRS is very slow to pay refunds to Canadians and other non-residents making refund claims based on 1042-S slips. readSee https://taxpayeradvocate.irs.gov/Media/Default/Documents/2017-ARC/ARC17_Volume1_MSP_15_International.pdf
Keep these links in mind should you not receive the refund due to the address change https://www.irs.gov/individuals/understanding-your-cp32a-notice Form 3911, Taxpayer Statement Regarding Refund. I suggest checking with IRS (telephone no on my website homepage) periodically to see that they’ve processed your return and refund check. You can also try https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp or https://www.irs.gov/newsroom/irs2goapp
Below are other ways you can change your address with IRS before and after tax return filing

Written by Daniel Gray | Posted in IRS • Tax Refund

22 Feb 2018

Real Estate Expenses During Pre-Acquisition

Grant Gilmour, Tax Advisor, Tax Blog, Vancouver, Canada, TaxConnections

There are various real estate expenditures that are deductible to the corporation and others that are capitalized or allocated to inventory. In this FAQ, we will discuss the real estate expenses that are deductible during the pre-acquisition phase as an operating expense to the corporation in the fiscal year that expenditures were incurred.

There are many “soft” costs in real estate such as representation costs, site investigation costs and financing expenses.

Representation costs are eligible for a deduction for amounts paid in the year. Examples of these costs are rezoning applications, project planning and preliminary design costs. Read More

Written by Grant Gilmour | Posted in Canada • International • Real Estate

14 Feb 2018

Explanation And 10 Examples Of The Rules For Determining An Alien’s Period Of Residency In The United States

An alien’s period of residency in the United States must have an official starting date and ending date. The rules for determining these dates are as follows.

Residency Starting Date Under The Green Card Test

If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident (the date on which the United States Citizenship and Immigration Services (USCIS) has officially approved your petition to become an Immigrant). Read More

Written by Daniel Gray | Posted in US Residency

09 Feb 2018

Tax Deductions Vs. Tax Credits

Tax Credits and Deductions are probably the most exciting part when preparing your tax return. They both help you save money by reducing your overall income tax liability. So, you should take a full advantage of all the tax credits and deductions you qualify for.
As many still get confused about the difference between tax credits and tax deductions, here’s a simple introduction to the these two in the light of the New Tax Reform that just has been approved. Read More

Written by Olivier Wagner | Posted in Tax Credit • Tax Deductions • Traveling Tax Digi-Nomad

06 Feb 2018

Non-US Person Owing US Real Property – Check That You’ve Complied With Form BE-15 Claim For Exemption Reporting

All U.S. business enterprises in which a foreign person (in the broad legal sense, including a company) owns directly and/or indirectly a ten-percent-or-more voting interest (or the equivalent) are subject to these reporting requirements. This includes foreign ownership of real estate, improved and unimproved, except residential real estate held exclusively for personal use and not for profit making purposes. Read More

Written by Daniel Gray | Posted in Exemptions

24 Jan 2018

What You Need To Know About Renouncing U.S. Citizenship

The U.S. citizenship comes with all the arduous requirements and liabilities, hence why more people than ever started to question whether the benefits outweigh the costs. Thought of renouncing a U.S. citizenship may pass through your mind if you are already a dual citizen, have no ties with the U.S. and don’t want to carry the U.S. tax burden anymore. Some people fall into the category of “Accidental Americans” and they have never even considered themselves being Americans, so it’s the only way to free themselves from the IRS and stop playing their tax game. Read More

Written by Olivier Wagner | Posted in Canada • Citizenship • United States

24 Jan 2018

FBAR Reporting Requirement Or Exception – 4 Types Of Foreign Retirement Accounts

Foreign retirement accounts do not meet the FBAR filing exception for U.S. retirement accounts in 31 CFR 1010.350(g)(4). That exception specifically applies to plans under sections of the Internal Revenue Code, that is, domestic U.S. plans.

FBAR reporting of foreign retirement accounts will be determined by the facts of each situation. However, these general guidelines may be helpful in determining whether your foreign retirement account should be reported on the FBAR. Read More

Written by Daniel Gray | Posted in FBAR • TaxConnections

19 Jan 2018

Renegotiating NAFTA: Are We There Yet?

Canadians could be forgiven for experiencing at least some NAFTA fatigue. The talks that began back in August have moved along in fits and starts — with little to show in tangible outcomes. Meanwhile, U.S. President Donald Trump has threatened to abandon NAFTA, yet negotiations-watchers have struggled to read his true intentions. Read More

Written by Dan McGeown | Posted in Canada • NAFTA

02 Jan 2018

Correcting Tax Mistakes After Fairmont and Jean Coutu

I was very glad to be a panelist for the Canadian Tax Foundation’s conference on the Supreme Court of Canada’s decisions in Fairmont and Jean Coutu.

During the discussion the panelists were asked about the ways taxpayers may correct tax mistakes after these two decisions of the Supreme Court. Read More

Written by Theodor Van Stephoudt | Posted in Canada

27 Dec 2017

2017 Federal Budget Bill #2 Receives Royal Assent

This bill implements certain measures announced in the 2017 federal budget. Bill C-63 also includes catch-up measures previously included in September 16, 2016 draft legislation, measures related to the principal residence exemption, and some specified cooperative income measures. Bill C-63 also contains some GST/HST measures related to pension plans and drop shipments, and other indirect tax measures that were previously released in draft legislation on September 8, 2017 (see TaxNewsFlash-Canada No. 2017-50). Read More

Written by Aaron Giles | Posted in Budget • Canada • Federal

30 Nov 2017

Canada Revenue Agency – Important Dates for 2018

Canada Revenue Agency (CRA) has a number of dates and deadlines of importance to corporations. Failure to comply with these deadlines may raise a red flag with CRA, which in turn may trigger an audit.

Written by Grant Gilmour | Posted in Canada • Corporate • Small Business

08 Nov 2017

US Tax Reform Bill Appears To Confiscate 12% of Retained Earnings of Certain Canadian Controlled Private Corporations

Kudos to Max Reed for his quick analysis on how the proposed U.S. Tax Reform bill may affect Canadian citizens/residents who also hold U.S. citizenship.

Reed’s analysis, which has been widely discussed at the Isaac Brock Society includes provisions that are very damaging to those who are the owners of Canadian Controlled Private Corporations (noting they are also under assault from Messrs. Trudeau and Morneau). The damaging provisions are both prospective and retrospective.

Written by John Richardson | Posted in Canada • Tax Reform • United States