This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
I am a US citizen and a Canadian citizen and am a resident in Canada.
If I was to sell inventory through Amazon FBA in the US would this be considered US source income or foreign? "I" didn't take part in the transaction itself in the states, I simply ship things to Amazon to sell and fulfill for me.
From my understanding of the IRS's definition of US source income, I must be present in the US while partaking in a transaction / business for it to be considered "US source". Inventory may complicate the matter on the exact source of income.
Even though the transaction is in the US and changes hands to a US buyer? I am getting conflicting views from others saying this would be US source because its being sold and purchased in the US.
Indeed. Since this income is going to be reported on both returns, the only thing that matter s is treaty sourcing, since that alone will determine how it is tax (or, more correctly, how credits on 1116 will be determined: either Cdn-sourced, or Cdn-sourced by treaty.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing