Tax implications for renting office space in the US on TN visa

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tn_gotcha
Posts: 2
Joined: Fri May 13, 2022 10:23 am

Tax implications for renting office space in the US on TN visa

Post by tn_gotcha »

Hi experts

I recently got my TN visa and I need to work remote, but as a company policy it has to be from within the USA, so was thinking of commuting back and forth on daily basis - basically cross over in the morning, do my work and come back. I was thinking of renting either a small office (preferred) or using a co-working space. What would be the tax implications for both of them, if any.

Regards
nelsona
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Re: Tax implications for renting office space in the US on TN visa

Post by nelsona »

Because you are establishing a "fixed base:" in US, you will need to pay US (and state) income tax on the earnings from this. If you were-self employed, and working from Canada, you would not have to pay US tax.

You will have to pay US tax, but will get credit for these taxes when you report them in Canada.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
On hiatus until May.
tn_gotcha
Posts: 2
Joined: Fri May 13, 2022 10:23 am

Re: Tax implications for renting office space in the US on TN visa

Post by tn_gotcha »

Thanks for the quick reply, sorry the alert landed in my junk folder.

If I am employed, wouldn't the tax paid by my employer would cover this, I am not making any additional income, I am just renting an office to do official duties needed for my employment and instead of my employer paying for the rent, I am paying it from my pocket. If my employer had an office close by, I would have used that.

Thanks in advance
nelsona
Posts: 17635
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tax implications for renting office space in the US on TN visa

Post by nelsona »

Of course, if you are an employee, the tax that YOU pay (the employer withholds tax from YOU), will more or less cover your tax obligations.

If you re-read what I posted, I was referring to being self-employed, which would make much more sense if you are going to have an outlay of expense to rent an office. That is how you would have been paid if you remained in Canada.

There is little advantage being a US employee if you are still living in canada.
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
On hiatus until May.
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