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Tag Archive for Canada

Real Estate Expenses During Pre-Acquisition

Grant Gilmour, Tax Advisor, Tax Blog, Vancouver, Canada, TaxConnections

There are various real estate expenditures that are deductible to the corporation and others that are capitalized or allocated to inventory. In this FAQ, we will discuss the real estate expenses that are deductible during the pre-acquisition phase as an operating expense to the corporation in the fiscal year that expenditures were incurred.

There are many “soft” costs in real estate such as representation costs, site investigation costs and financing expenses.

Representation costs are eligible for a deduction for amounts paid in the year. Examples of these costs are rezoning applications, project planning and preliminary design costs. Read more

Explanation And 10 Examples Of The Rules For Determining An Alien’s Period Of Residency In The United States

Daniel Gray, Tax Advisor, Tax Blog, Toronto, Canada, TaxConnections

An alien’s period of residency in the United States must have an official starting date and ending date. The rules for determining these dates are as follows.

Residency Starting Date Under The Green Card Test

If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident (the date on which the United States Citizenship and Immigration Services (USCIS) has officially approved your petition to become an Immigrant). Read more

Tax Deductions Vs. Tax Credits

Olivier Wagner, Tax Digi Nomad, Vancouver, Canada, Tax Blog, TaxConnections

Tax Credits and Deductions are probably the most exciting part when preparing your tax return. They both help you save money by reducing your overall income tax liability. So, you should take a full advantage of all the tax credits and deductions you qualify for.

Tax Credits and Deductions are probably the most exciting part when preparing your tax return. They both help you save money by reducing your overall income tax liability. So, you should take a full advantage of all the tax credits and deductions you qualify for.
As many still get confused about the difference between tax credits and tax deductions, here’s a simple introduction to the these two in the light of the New Tax Reform that just has been approved.  Read more

Non-US Person Owing US Real Property – Check That You’ve Complied With Form BE-15 Claim For Exemption Reporting

Daniel Gray, Toronto, Canada, Tax Advisor, Tax Blog, TaxConnections

All U.S. business enterprises in which a foreign person (in the broad legal sense, including a company) owns directly and/or indirectly a ten-percent-or-more voting interest (or the equivalent) are subject to these reporting requirements. This includes foreign ownership of real estate, improved and unimproved, except residential real estate held exclusively for personal use and not for profit making purposes. Read more

Plugging The “Pipeline” Raises The Spectre Of Double Taxation

peter Kurjanowicz Tax Advisor, TaxConnections

In a recent blog post I looked at a number of impacts that may be experienced by Canadian business owners should recent tax proposals become law. Many of these are more germane to long-term tax planning, however, one of them may have very immediate consequences. In the case where a business owner passes away or has recently passed away, the estate and executors will likely face immediate issues—and the potential for double taxation. Read more

What You Need To Know About Renouncing U.S. Citizenship

Olivier Wagner, Tax Advisor, Vancouver, Canada, TaxConnections

The U.S. citizenship comes with all the arduous requirements and liabilities, hence why more people than ever started to question whether the benefits outweigh the costs. Thought of renouncing a U.S. citizenship may pass through your mind if you are already a dual citizen, have no ties with the U.S. and don’t want to carry the U.S. tax burden anymore. Some people fall into the category of “Accidental Americans” and they have never even considered themselves being Americans, so it’s the only way to free themselves from the IRS and stop playing their tax game. Read more

FBAR Reporting Requirement Or Exception – 4 Types Of Foreign Retirement Accounts

Daniel Gray, Tax Advisor, Toronto, Canada, TaxConnections

Foreign retirement accounts do not meet the FBAR filing exception for U.S. retirement accounts in 31 CFR 1010.350(g)(4).  That exception specifically applies to plans under sections of the Internal Revenue Code, that is, domestic U.S. plans.

FBAR reporting of foreign retirement accounts will be determined by the facts of each situation.  However, these general guidelines may be helpful in determining whether your foreign retirement account should be reported on the FBAR. Read more

Renegotiating NAFTA: Are We There Yet?

Dan McGeown, Tax Advisor, Toronto, Canada, TaxConnections

Canadians could be forgiven for experiencing at least some NAFTA fatigue. The talks that began back in August have moved along in fits and starts — with little to show in tangible outcomes. Meanwhile, U.S. President Donald Trump has threatened to abandon NAFTA, yet negotiations-watchers have struggled to read his true intentions. Read more

Tax Alert (USA) – US Tax Cuts & Jobs Act

Trevor Bennington, Tax Advisor, Langley, BC, TaxConnections

On November 2, 2017, the US Congress House Ways and Means Committee unveiled the tax reform plan called the Tax Cuts & Jobs Act.  The bill aims to simplify the Internal Revenue Code and introduce tax savings for the average American family.  Although it is unlikely that the legislation will make it through Congress unscathed, it does provide a more detailed blueprint of the tax reforms that the citizens would like to enact.  Below are highlights of the proposed changes. Read more

Correcting Tax Mistakes After Fairmont and Jean Coutu

I was very glad to be a panelist for the Canadian Tax Foundation’s conference on the Supreme Court of Canada’s decisions in Fairmont and Jean Coutu.

During the discussion the panelists were asked about the ways taxpayers may correct tax mistakes after these two decisions of the Supreme Court. Read more

2017 Federal Budget Bill #2 Receives Royal Assent

This bill implements certain measures announced in the 2017 federal budget. Bill C-63 also includes catch-up measures previously included in September 16, 2016 draft legislation, measures related to the principal residence exemption, and some specified cooperative income measures. Bill C-63 also contains some GST/HST measures related to pension plans and drop shipments, and other indirect tax measures that were previously released in draft legislation on September 8, 2017 (see TaxNewsFlash-Canada No. 2017-50). Read more

Canadian Court Allows Extradition Of Tax Shelter Promoter

Ronald Marini, Tax Connections

A Canadian court has granted the U.S. government’s request to extradite a tax attorney who is facing charges back home accusing him of helping former partners of Ernst & Young LLP develop and market fraudulent tax shelters, while dodging more than $8 million in taxes himself. A Canadian court has granted the U.S. government’s request to extradite a tax attorney who is facing charges back home accusing him of helping former partners of Ernst & Young LLP develop and market fraudulent tax shelters, while dodging more than $8 million in taxes himself. Read more