help needed for move back to the USA with green card - Sandy Botkin audio course for small business for Canada AND the US - inte
I am a
Canadian who will be moving to the
1)
as self
employed in
2)
What expenses
should I be able to claim as legitimate cost of doing business as I set up and
operate the business in
3)
What strategies do I employ to
minimize tax in both jusridictions particularly in light of the upcoming move
between jurisdictions?
I was
previously a Green card holder. I formally gave that visa up when I was
transferred back to the
states??, so I had a social insurance number etc
and paid taxes in the states when
living there. I do have some rudimentary understanding of the things I
need to do to minimize tax such as selling RRSP assets and buyback to raise book
value to market prior to relocating but I need some professional advice and
guidance.
Do you do
this kind of work for individuals? How do you bill and at what cost?
Regards
david ingram replies:
Sounds like a marriage to me.
1. Until you find out how well you are doing, you are likely better off to just keep your position as a self employed consultatnt and file Scheduel T2032 in Canda and schedule C on your US return. There is NO tax advantage to you to have a corporation in the US and a lot more accounting costs for a very dubious hint of personal liability protection with a Subchapter S US corporation. The reason is that a one person Subchapter S coreporation is run by yourself, the work is done by yourself, and if there is a problem, you are responsible as the person who did it. So, just as I would sue you, the driver, who had a collision with me and the car was owned by a corporation, I would suse you the operator or worker who did something for the corporation.
2. Moving expenses are dedcutible if you move closer to a place of employment. Your description has you moving further away from Vancouver BC (although closer to Vancouver, WA). Canada does NOT allow moves in or out of the country except for students and members of the Armed forces and since yuo are moving away from the job, there is no relocation fee deductible for Canada. You can file US form 3903 to claim moving expenses to the US but only against income in the new location. Immigration costs are not deductible in either country.
3. Beats me, I do not have enough information. I have sold some 700,000 books on the subject but they are sold out. Sandy Botklin, a US based CPA and former IRS agent has a Canadian AND an American audio course on the subject. They are $249.00 each at.
http://taxtips4networkmarketers.com/?gclid=CK7D69u-xo0CFRY9YQodVUs7HA
If that is too rich for your blood, you can buy a 2002 version which statres that it includes Canada and the US on ebay for $114.00 at
http://cgi.ebay.com/Tax-strategies-CD-Set-Sandy-Botkin_W0QQitemZ110022414226QQihZ001QQcategoryZ29792QQrdZ1QQssPageNameZWD1VQQcmdZViewItem
What you want is what I do, either in person or 50% of the time by LD phone. I charge $400.00 Cdn per hour plus GST if you are in canda at the time of the phone consultation or in person.
You will find more pricing information inthe following disclaimer.
I think you got the countries wrong in your question. I am assuming that you meant Canada where I have enlarged and printed the States in red.
David Ingram wrote:
However, I regularly search for the words"PAYING CUSTOMER" and
always answer them first if they did not get spammed out. As an example, as I
write this on June 28th, since June 16th (12 days), my 'spammed out' box has
7,118 unread messages, my deleted box has 2630 I have actually looked at and
deleted and I have answerd 63 email questions I have answered for clients and
strangers. I have also put aside 446 messages that I am maybe going to try
and answer because they look interesting.
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office)
$1,600 would be for two people with income from two countries
David Ingram expert income tax and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty
---------------------------------------------------------------------------------------------------------------
It is very unlikely that blind or unexpected email to me will
be answered. I receive anywhere from 100 to 700 unsolicited emails a
day and usually answer anywhere from 2 to 20 if they are not from existing
clients. Existing clients are advised to put their 'name and PAYING
CUSTOMER' in the subject and get answered first. I also refuse to be a
slave to email and do not look at it every day and have never ever looked at it
when i am out of town.
Therefore, if an email is not answered in 24 to 36 hours, it
is lost in space. You can try and resend it but if important, you will
have to phone to make an appointment. Gillian Bryan generally accepts
appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday
VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office)
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
for expert help, assistance, preparation,
or consultation in connection with personal or
business affairs such as at www.centa.com. If you forward this message, this disclaimer must be
included."
David Ingram gives expert income
tax & immigration help to non-resident Americans & Canadians from
New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
authority.
Phone consultations are $400 for 15
minutes to 50 minutes (professional hour). Please note that GST is added if
product remains in Canada or is to be returned to Canada or a phone consultation
is in Canada.
This is not intended to be definitive but in
general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only - no self employment or rentals
or capital gains - you did not move into or out of the country in this
year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no
rental
$1,200 would be the minimum with a move in or out
of the country. These are complicated because of the back and forth foreign tax
credits. - The IRS says a foreign tax credit takes 1 hour and 53
minutes.
$1,500 would be the minimum with a rental or two in
the country you do not live in or a rental and a business and foreign tax
credits no move in or out
$1,600 would be for two people with income from two countries
$2,800 would be all of the above and you moved in
and out of the country.
This is just a guideline for US / Canadian
returns
We will still prepare Canadian only (lives in
Canada, no US connection period) with two or three slips and no capital
gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely
$450
And an American only (lives in the US with no
Canadian income or filing period) with about the same things in the same range
with a little bit more if there is a state return.
Moving in or out of the country or part year
earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00
each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00
each.
18 RRSPs would be $900.00 - (maybe amalgamate a
couple)
Capital gains *sales) are likely $50.00 for
the first and $20.00 each after that.
Just a guideline not etched in
stone.
This from "ask an income trusts tax and immigration expert"
from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily
basis with expatriate tax returns with multi jurisdictional cross and
trans border expatriate problems for the United States, Canada, Mexico,
Great Britain, 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,
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Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax
returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland,
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NR-6 NR 6 Non-Resident Real Estate tax specialist expert
preparer expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border
transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income
Tax Convention
David Ingram expert income tax and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty
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