Tax Planning

US Tax Reform: A Cross-Border Perspective for Canadians With Ties to the US and Americans Living in Canada

2018 is almost here, and as 2017 comes to a close, Republicans in the US Congress are racing to pass the widest-sweeping legislation to reform US tax since the 1980s. Below is a comparison of the Senate and House versions of the tax reform bills, with a focus on four key issues and a discussion of the cross-border implications of the proposed tax reforms. 1) Tax Brackets Senate Bill: Keeps seven tax brackets (the current number of brackets), but shifts some income brackets to lower rates. House Bill: Reduces the number of tax brackets to four. Tentative House & Senate […]

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Canadians and US Real Estate Laws

Many Canadians dream about owning a property in the US for retirement or investment purposes or simply to escape winter. Regardless of the reason for owning US property, Canadians need to be aware of the rules and tax issues they are subject to when renting or selling such property. Rental Income If Canadians rent their US real estate for 15 days or more, they may have to file a US income tax return to report their rental activity. Rental income paid to Canadians is subject to a 30% US federal withholding tax. This amount is applied to gross rental income, […]

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Prescribed Interest Rate Loan

There may be US tax complications while creating a prescribed interest rate loan with family members to split income.

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