US citizen living in Canada still have small business in US

shelly · Post by **shelly** » Mon Aug 11, 2008 7:53 pm

I am a US citizen living in Canada. My husband is here on a work visa until Dec 2009, and we are currently in the process of becoming permanent residents, through the Provincial Nominee Program. I moved here at the end of June 2008. (He is a Latvian citizen)
I still own a small cleaning company in the US, only making 30,000 a year. (I am in the process of trying to sell it.) I don't want to make any mistakes in my tax filings and want to find out all I can a head of time.
Question 1- Will I have to pay taxes on my small business income in both the US and Canada?
Question 2- Once we are permanent residents and I am able to start working here will I have to pay taxes on my Canadian income in both Canada and the US?
Answers to these questions and any other helpful information would be greatly appreciated.

nelsona · Post by **nelsona** » Tue Aug 12, 2008 5:44 am

Yes tp both questions. With various credits you will end up paying rax at the Cdn/prov rate, but will have to report all income ob both returns.

shelly · Post by **shelly** » Tue Aug 12, 2008 10:36 am

Is this type of filing something that an individual can do themselves? I've done my own filings of the 1040 myself for the last 10 years or do you recommend getting a tax specialist to help out?
Also would our children get claimed for both the US and Canada?
At the begining of July 2008 my husband began claiming us as dependents at his job.
Thank you

nelsona · Post by **nelsona** » Tue Aug 12, 2008 10:56 am

I would get the first year taxes done by a pro.

After that you should be able to follow it from year to year.

One person should prepare all ta returns, to ensure that proper accounting of all types of income deductions etc are handled in the same way.