Canada - self employed income

shyboy · Post by **shyboy** » Wed Jul 02, 2008 7:29 am

working under TN in USA, I went outside USA (not Canada) and performed some work for a Canadian Company and now the company is sending me $10,000/- check for the services performed in 2006.

How should I disclose this income, pay taxes in Canada?
of-course I have to pay tax in USA but can I claim my air tickets as an expense?

how should I handle this?

thanks

nelsona · Post by **nelsona** » Wed Jul 02, 2008 9:08 am

You should not have to pay any tax in Canada. If any was withheld, you will get it back by filinga non-resident return.

In US it is merely self-employed income, subject to all the same regs as if earned in US. There is a Schedule SE, on which yoy determine your net income from this endeavour, as well as determine the extra SE tax you owe.

Specifically on the travel expense, if you flew exclusively for the purpose of working (ie. went to the clients office, etc), I see no issue. If you flew to Tahiti to then telecommuted, just to avoid running afoul of your TN status, I would have trouble justifying the expense, or at least most of it.

shyboy · Post by **shyboy** » Mon Jul 07, 2008 2:00 pm

is the gift money taxable?

if not then what is the limit that can be considered as gift money..

thanks,

nelsona · Post by **nelsona** » Mon Jul 07, 2008 2:13 pm

What does gift have to do with this thread?

Ask on another thread