Are you, or someone you know, a US citizen? Do you, or someone you know, commute to the US on a regular basis? Or maybe have you, or someone you know, recently immigrated or emmigrated to/from Canada?
Each of these scenarios trigger specific tax reporting obligations.
- As a US citizen you are still required to file a US tax return annually even if you are living abroad.
- If you spend too many days in the US in the current calendar year, or over a three year period, you may be considered a resident of the US and have a US filing requirement.
- If you immigrate to Canada you must file your Canadian return in a specific way to indicate you have entered Canada.
- If you emmigrate from Canada you must file your Canadian return in a specific way to indicate you are leaving Canada. You must also report specific information about your assets before departure.
Also, did you know that there could be negative tax consequences for a US citizen if you own a Canadian Tax Free Savings Account, Registered Education Savings Plan, or even Canadian mutual funds? There are also special elections you must file regarding your Registered Retirement accounts, and may also have to report your non-US financial accounts. If you don't file the necessary forms/elections on time, there could be significant penalties for each late form/election ($10,000 or higher in the US).
My specialization is in Canada-US cross border taxation. We help our clients navigate the complex tax rules that effect them both in the US and in Canada so that our clients may minimize their tax and avoid unnecessary penalties.
If you would like us to assist you, please contact us.