Search found 19 matches

by Moving2Canada
Wed Nov 27, 2019 5:38 pm
Forum: Canada / United States Tax & Accounting
Topic: Dividend Tax Credit - Canadian receives US dividends
Replies: 3
Views: 193

Re: Dividend Tax Credit - Canadian receives US dividends

Thank you. Perhaps I am mistaken in calling it the dividend tax credit... Would US dividends receive a preferential tax rate in Canada? The income would already be taxed in the U.S. (under the C-Corp, albeit at a lower corporate tax rate). When the C-Corp pays me in Canada through dividends is there...
by Moving2Canada
Tue Nov 26, 2019 2:55 pm
Forum: Canada / United States Tax & Accounting
Topic: Dividend Tax Credit - Canadian receives US dividends
Replies: 3
Views: 193

Dividend Tax Credit - Canadian receives US dividends

I am a Canadian citizen/resident and own a U.S. C-Corporation. The U.S. C-Corp is taxed at the US corporate tax rate and then pays me through dividends. Are the US dividends, received in Canada permitted to receive the Dividend Tax Credit (~15% tax rate)? I’ve read conflicting advice… https://www.th...
by Moving2Canada
Wed Sep 25, 2019 4:14 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian (in Canada) receiving dividends in the U.S.
Replies: 1
Views: 258

Re: Canadian (in Canada) receiving dividends in the U.S.

I found this... "To receive pass-through profit distributions, a foreign citizen may form a limited liability company. In contrast, all profit distributions (called dividends) made by a C corporation are subject to double taxation. (Under US tax law, a nonresident alien may own shares in a C corpora...
by Moving2Canada
Wed Sep 18, 2019 5:50 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian (in Canada) receiving dividends in the U.S.
Replies: 1
Views: 258

Canadian (in Canada) receiving dividends in the U.S.

I live and work in Canada (self-employed). I would like to invest in a U.S. company and receive profits in the form of dividends (or other). What type of company (S-Corp, etc.) should I request my U.S. associates to set up to receive my Canadian investment (would be made in U.S. dollars but coming f...
by Moving2Canada
Tue Aug 20, 2019 2:56 pm
Forum: Canada / United States Tax & Accounting
Topic: 1042S - Foreign Persons U.S. Source Income s/t/w
Replies: 2
Views: 149

Re: 1042S - Foreign Persons U.S. Source Income s/t/w

If I perform ALL of my work in Canada (sent via email and phone) to the US, does that change things? Would my client issue a 1042S or some other form?

Thank you
by Moving2Canada
Fri Aug 16, 2019 3:51 pm
Forum: Canada / United States Tax & Accounting
Topic: 1042S - Foreign Persons U.S. Source Income s/t/w
Replies: 2
Views: 149

1042S - Foreign Persons U.S. Source Income s/t/w

I recently moved back to Canada for the U.S. I am now a self employed independent contractor with clients that are based in the U.S. Do my clients pay me under form 1042S - Foreign Persons U.S. Source Income subject to withholding or a standard 1099? If the 1042S, and there is a tax treaty between C...
by Moving2Canada
Tue Jun 25, 2019 1:16 pm
Forum: Canada / United States Tax & Accounting
Topic: Working Remotely From Canada for US company
Replies: 9
Views: 523

Re: Working Remotely From Canada for US company

I have a similar situation... moving to Canada (Canadian citizen) but will go the self-employed route instead of incorporating, will have 1 U.S. client. The U.S. client is my current employer but I will be transitioning to a contractor roll from Canada. What IRS form does my US client pay me under? ...
by Moving2Canada
Fri Jun 14, 2019 11:42 am
Forum: Canada / United States Tax & Accounting
Topic: Moving to Canada and selling a US investment property
Replies: 3
Views: 247

Re: Moving to Canada and selling a US investment property

I have a similar question, though in my case we have the option to sell our primary US residence before moving to Canada or to make it a rental property and sell it at some point in the future. Canadian citizens. Is it better to hasten a sale (as a primary residence)? Assume economics of capital gai...
by Moving2Canada
Thu Mar 14, 2019 11:27 am
Forum: Canada / United States Tax & Accounting
Topic: LLC – incorporated in the US, located in Canada
Replies: 2
Views: 3058

Re: LLC – incorporated in the US, located in Canada

Found this older thread, which is similar to my situation but also different... Looking at opening a Canadian business (owned and operated in Canada), which would provide services to US clients. These are my options for seting up the business: 1) Set up a Canadian Sole Proprietorship 2) Set up a Can...
by Moving2Canada
Wed Mar 13, 2019 12:30 pm
Forum: Canada / United States Tax & Accounting
Topic: Worked part year US/part year CAN (TN Visa)
Replies: 6
Views: 407

Re: Worked part year US/part year CAN (TN Visa)

I'm in a similar situation. Would leave the US ~August 15th. To re-confirm the Feb 26, 2019 post... in short, I'd file US tax return showing entire year (and claiming tax credit for CDN taxes Aug-Dec). I'd file CDN tax return showing only Aug-Dec. The net effect would be: Income Jan-Aug: US tax only...
by Moving2Canada
Wed Jan 16, 2019 5:18 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian business entity with US client
Replies: 0
Views: 193

Canadian business entity with US client

I'm relocating from US to Canada (Canadian citizen) and will set up my own small business in Canada that would have 1-2 US clients. Most of the work would be conducted in Canada but billings would be sent to US and received from US clients. What type of business entity in Canada would provide the be...
by Moving2Canada
Mon Oct 29, 2018 2:27 pm
Forum: Canada / United States Tax & Accounting
Topic: US or CDN tax - contract in the US
Replies: 6
Views: 598

Re: US or CDN tax - contract in the US

Thank you for the clarification. What about deferred payments? For example, I work until Dec 31 in the U.S. but don't receive my paycheque until January 15 of the following year. Is that money taxed in the U.S. only? What about bonus earned in one year (while living/working in the U.S.) and received...
by Moving2Canada
Thu Sep 27, 2018 1:30 am
Forum: Canada / United States Tax & Accounting
Topic: US or CDN tax - contract in the US
Replies: 6
Views: 598

Re: US or CDN tax - contract in the US

Thank you. By "YOU", you mean me (and not my wife and kids), correct? So if they move in the summer but I remain in the U.S. through Dec 31, then only the U.S. would tax, correct? It won't make sense for me to become a contractor just for the last 4-5 months of the year (from the perspective of cont...
by Moving2Canada
Wed Sep 26, 2018 3:15 pm
Forum: Canada / United States Tax & Accounting
Topic: US or CDN tax - contract in the US
Replies: 6
Views: 598

US or CDN tax - contract in the US

My family and I are Canadian and have lived/worked in US for 10 years. We are looking to move back to Canada next year. My family wants to move mid year (summer) but my current employer would like me to finish my contract through the end of December. 1) Would my income be taxed in US (and not in Can...
by Moving2Canada
Tue Aug 16, 2016 4:15 pm
Forum: Canada / United States Tax & Accounting
Topic: US Service firm charge GST/HST for Ontario clients?
Replies: 3
Views: 965

Thank you. I don't see any exemptions but it looks like it comes down to whether we are 'carrying on a business in Canada', which raises a whole new set of questions. http://www.cra-arc.gc.ca/E/pub/gl/p-051r2/p-051r2-e.html#P413_41376 They provide various examples of firms that are or are not 'carry...