I have experienced it myself. Moving from Canada to the US and navigating and preparing that multiple tax returns for both countries. It can be really daunting to read up on all the information you need to file properly.
Most of my clients are US base, and I continue to help some of my clients prepare their US-CAD tax solutions.
Individual tax return preparation
As
a U.S. citizen living in Canada or as a Canadian living in the U.S.,
you may need to file taxes in both countries. Whether it’s employment
income, other compensation, capital gains or real estate rentals, the
complexities of the tax and compliance regulations require a serious
understanding of the U.S.-Canada tax treaty.
Rental Property in Canada
Canadian
owners of real estate property are subject to U.S. tax and/or FIRPTA
withholding for non-residents when selling or renting that property.
But, that payment generates a foreign tax credit, which can then be used
to reduce the Canadian tax payable on the sale. Knowing how to apply
that credit gives you the best possible tax outcome. You can have the option and elect to be taxed 25% tax withholding on net income instead of the gross income.
FBAR & FATCA reporting in the U.S. & foreign reporting in Canada
Ownership
in out-of-country financial accounts (including bank accounts,
brokerage accounts, retirement accounts and mutual funds) must be
reported to the IRS and CRA. Canadian corporations operating in the U.S.
and vice versa must complete a Foreign Bank Account Reporting (FBAR)
form and/or a Foreign Account Tax Compliance Act (FATCA) form. We
identify all concerns and ensure compliance.
