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Year End Planning – US Citizens Who Own Canadian Mutual Funds

US citizens living in Canada face adverse US income tax consequences where they own Canadian or other non-US mutual funds.  If you are not sure how the US’s “Passive Foreign Investment Company” rules apply here, please see our previous blog entry US Persons Holding Non-US Mutual Funds.

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US State and Local Tax Consideration for Canadian Businesses

September 1 2015

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.

Canadian Corporations with US Business Activities, Federal, State And Corporate Returns (US), Nexus, US Tax

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