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's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
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)
$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
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