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US State and Local Tax Consideration for Canadian Businesses

Often Canadian businesses are surprised to learn about the reach of US state taxing jurisdictions to assert tax on out-of-state taxpayers.  Since none of the 50 states were signatories to the Canada-US Income Tax Convention (the “Treaty”), they are not limited by the Treaty to taxing business activities in the US.  It is not uncommon to find a Canadian business subject to a state’s taxing jurisdiction and completely exempt from US federal income taxation because of the Treaty.

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Canadian Tax Free Savings Accounts – US Tax Treatment

August 25 2015

Canadian Tax-Free Savings Accounts (“TFSAs”) can be an excellent way to accumulate savings which will generally never be subject to Canadian income tax while they grow in value whether through investment income or gains.   TFSAs have been around since 2009 and began with annual contribution limits of C$5,000.  Beginning in 2015, the contribution limit increased to C$10,000.  While they offer significant benefits to Canadian residents, US persons with interests in TFSAs should be aware of the US tax treatment of these accounts.

TFSA (Tax Free Savings Account)

Changes to Certain Cross-Border Tax Amounts for 2015

February 4 2015

As the calendar changes to 2015, both the Internal Revenue Service and Canada Revenue Agency have changed or left unchanged certain amounts and figures. Below are some of the revised amounts, numbers and limits for the year 2015 relevant to US citizens resident in Canada.

Canada Revenue Agency

Canada Revenue Agency Extends The 2013 Personal Tax Return Filing Deadline

April 14 2014

Recently the Canadian federal government’s website and computers were hit by the Heartbleed bug.  The computer virus took down Canada Revenue Agency’s online filing services and also prompted the government to shut down access to client information sites such as Represent a Client, Netfile, My Business Account and My Account.  Canada Revenue Agency acknowledged that this event impacted individuals trying to gather their information to file their 2013 personal income tax returns which would normally be due on or before April 30, 2014.

Canada Revenue Agency, Filing Deadline Extension, Heartbleed Bug