Search blogs

Extending the US Tax Filing Deadline

Mention the date April 15th to a US person and their first thought probably turns to taxes.  Individuals who are required to file a US income tax return are generally required to file their return on or before April 15th provided that the date falls on a weekday.  In years when the 15th falls on a weekend, the due date is delayed to the first business day after the weekend.  It gets a little more complicated to determine the correct tax filing due date when Emancipation Day, a date normally observed in the District of Columbia on April 16th falls on a weekend or Monday.  In 2013, April 15 falls on a weekday and consequently Monday April 15, 2013 is the due date for many US individual income tax returns.

Read more

Married Couples – When to Consider Filing Separately

February 8 2013

Many married US citizen and/or US resident couples file a joint US income tax return.  It is convenient, allows taxation of income at potentially lower tax rates compared to filing separately and may save a small amount of preparation time and professional fees.  However, in some situations, filing a joint US income tax return may actually increase a couple’s overall US Federal income tax liability.

Tax Liabilities

US Federal Income Tax – Gains on Sale of your Home Part 1

December 14 2012

Generally, Canadians living in Canada are not subject to tax on gains from the sale of their principal residence. However, for a Canadian resident who is also a US citizen or resident (including permanent resident or “green-card” holder and those meeting the “substantial presence” test), the same capital gain may be taxable on his or her US income tax return. Under US Federal tax law, an individual may exclude from income up to US$250,000 of gain from the disposition of his primary residence. For a married couple filing a joint US income tax return, the maximum exclusion is US$500,000. Any capital gain exceeding the excluded amount is taxed in the US in the year realized.

Canadian Real Property, Personal US Tax Return Issues, Principal Residence, Sale Of Principal Residence, US Citizens Resident In Canada

US Tax vs. Canadian Tax

December 3 2012

There are many similarities between the US and Canada, but there are some significant distinctions between US and Canadian tax law especially for US citizens resident in Canada, including permanent residents of the US (“green-card” holders). For the unwary those distinctions may result in substantial US tax liabilities where those differences are not identified in advance. The discussion below highlights three differences, among many, that may trigger unexpected US tax liabilities for US persons resident in Canada.

Canadian Tax Law, Capital Dividends, Capital Gains, Green Card, Permanent Resident, Stock Options, Tax Liabilities, US Citizens Resident In Canada, US Tax Law