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Steven Flynn comments on BC’s new speculation and vacancy tax and the impact on foreign nationals who own Canadian real estate

Canada Revenue Agency (CRA) is poised to receive significant data from the BC government that will help tie home ownership to income declarations. While BC's speculation and vacancy tax is a measure to address the housing crisis in major urban centers in BC, it can also have an impact on “satellite” families who declare very little as Canadian income and those who own a secondary urban home that remains empty for most of the year.

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Global Intangible Low-Taxed Income (“GILTI”)

October 9 2018

The December 2017 U.S. tax reform included a provision to subject to U.S. tax the earnings of intellectual property owned by U.S. investors outside the US. GILTI impacts U.S. persons resident in Canada who own Canadian and other non-U.S. corporations. Without effective tax planning, combined U.S. and Canadian tax rates approaching 85% could occur as early as 2018.

Federal, State And Corporate Returns (US), GILTI (Global Intangible Low Taxed Income), IRS (Internal Revenue Service), Tax Liabilities

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 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