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QUESTION:
What taxes am I subjected to if I am a Canadian Resident under the employ of a U.S. company to conduct business in Canada and the U.S. but I will stay in Canada more than 183 days and I reside in Canada?
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david ingram replies:
This is another situation we deal with every day.
As a Canadian resident, you are taxable on your world income because of the more than 183 day rule. Article IV of the US / Canada tax treaty will also have an affect on which country gets to tax your world income.
You can read Article IV and get a lot more information by going to www.centa.com and reading the section titled [US / Canada Taxation].
In general, a US citizen / Canadian Resident can exempt up to $80,000 US of income earned in Canada. However, your question implies that you are also doing some work in the United States
If this is the case, we will have to record those days and the amount earned in the USA on form 2555.
We would pay tax on that amount to the USA first and then report it again in Canada and cl;aim a foreign tax credit for the tax paid to the USA.
You should also go to the newsletter section and read the Oct 1995 newsletter which deals with the responsibilities you have to the US government when living in Canada.
You will go crazy trying to find someone to prepare your returns together. Whatever you do, do NOT have one person prepare the Canadian and another do the US return. Make sure that the same person has both skills at the same time.
We would be happy to prepare your return by mail, fax, email, or courier. We specialize in out of country returns for American, Australian, New Zealander, English and Canadian expatriates or those who live in one country with investmenmts in another.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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