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.
How should HST on deductible expenses be handled on US taxes? Is it:
1. Included as part of the deductible expense?
or
2. Excluded from the deductible expense and not reported elsewhere?
or
3. Excluded from the expense, but added to the foreign tax paid used for the foreign tax credit?
Another way to ask is when preparing expenses for an accountant, should we exclude HST, include HST, or separate out the HST?
HST would be an expense on your busines, NOT a foreign income tax.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
If you have recovered the HST as an input tax credit by filing in Canada then you do not list it anywhere not even as an expense, otherwise its an expense.