This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
To: [email protected]=20
Sent: Wednesday, November 19, 2003 12:06 PM
Subject: US Income to a CCPC
David,
I am a new planner in the Estate and Financial Planning Services =
division
with XX XX, and DXX HXXX thought you could help me here. I met with a
client who lives in Calgary, is a Cdn resident and citizen and owns a
company with his wife 50-50. The Corp's sole source of income is work
with a US company in Alaska. The corp gets paid in US dollars. Then =
they
pay themselves a small income out of the corp. He spends about 10 =
weeks
a year in Alaska.
Should they be filing US returns? Should the Corp be filing US Returns?
I have gone through a few years worth of your newsletters and have been
unable to find the answer.
Any help would be appreciated.
Thanks David,
GXXXX XXXXXXXXX
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
david ingram replies:
1. The corporation should be filing a US 1120F tax return. It is =
performing work in Alaska and the USA and is a taxable entity.
2. He should be filing a 1040NR and report the percentage of income =
that he receives for his work in Alaska. You have not stated what the =
work is and if it is only a 10 week seasonal job that results in all the =
money going to the corporation for his services than all of his income =
is taxable in the US. If he and his wife are providing some sort of =
service on a year round basis and he goes up there to gather data under =
B1 status, then for US purposes, he would prorate his time between the =
US and Canada. =20
As an example, to make it simple. =20
If he is getting $36,500 a year out of his company and truly does =
(works) (as I do) 365 days a year of thinking about the project, we =
could assume he gets $100 a day for his services. Ten weeks in Alaska =
would be $7,000 earned in the US. In this case, he would file his =
1040NR and claim an exemption under the US Canada tax treaty because his =
earnings in the US were under $10,000 US. =20
On the other hand, if he only actually works for ten weeks and that is =
all spent in Alaska, the whole $36,500 is taxable in the US on his =
1040NR tax return. He would pay tax to the US on the money and then =
report it again on a Canadian return and claim a foreign tax credit for =
the tax paid to the US.
I am happy to report that our office is ideally suited to look after =
this type of problem. =20
Sonja Clark is both a CPA and CA (and a lawyer by training), a US and a =
Canadian citizen and loves this type of family corporation working on =
both sides of the border. A lot of her clients have never been to our =
office and send in their US/Canadian corporations from places as diverse =
as Texas, California and Boca Rotan, Florida .
.
---------------------------
The answer above presumes that neither are also US citizens. If either =
or both are US citizens as well, the answer would be different. For =
instance, I can imagine that they are both US citizens who used to live =
in Skagway and have moved to Calgary and become Canadian citizens. He =
goes back to Skagway every summer for ten weeks to peform as Robert =
Service at the Elks Lodge Tourist show. (The fellow who does that spends =
his winters in Hawaii though). If that is the case and his work in =
Alaska is tourist related and he is a citizen, etc. Completely =
different answer.
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=20
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"
=20
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=20
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
Glenn E Dobson BA CFP
#502, 10235 101 St
Edmonton AB T5J 3G1
(p) 780-424-7441
(f) 780-425-3981
-------------------------------------------------------------------------=
--
This e-mail message (including attachments, if any) is intended for the =
use
of the individual or entity to which it is addressed and may contain
information that is privileged, proprietary , confidential and exempt =
from
disclosure. If you are not the intended recipient, you are notified =
that
any dissemination, distribution or copying of this communication is
strictly prohibited. If you have received this communication in error,
please notify the sender and erase this e-mail message immediately.
-------------------------------------------------------------------------=
--
Le pr=E9sent message =E9lectronique (y compris les pi=E8ces qui y sont =
annex=E9es,
le cas =E9ch=E9ant) s'adresse au destinataire indiqu=E9 et peut contenir =
des
renseignements de caract=E8re priv=E9 ou confidentiel. Si vous n'=EAtes =
pas le
destinataire de ce document, nous vous signalons qu'il est strictement
interdit de le diffuser, de le distribuer ou de le reproduire. Si ce
message vous a =E9t=E9 transmis par erreur, veuillez en informer =
l'exp=E9diteur
et le supprimer imm=E9diatement.
-------------------------------------------------------------------------=
--
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/87ff2986/attachment.htm
---------------------- multipart/alternative attachment--
What's Related