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U.S. Tax Tips

Canadians who own U.S. Real Property Should Plan for Incapacity and Probate.

Our qualified U.S. tax advisors will help you devise a comprehensive estate planning strategy that would decrease your tax exposure.

Our Advisors Can Help You Plan!
IRS Form 3520 A - Do you really have to file it?

IRS Form 3520 A is often filed by Canadian tax advisors with respect to Tax Free Savings Accounts (TFSAs) that are held by U.S. person. However, the tax treatment of TFSAs for U.S. federal income tax purpose is uncertain because there is there is no case law and no clear guidance by the IRS.

Our U.S. Tax Advisors will determine whether IRS Form 3520 A should be filed in your case?
Talk to U.S. Tax Advisors Prior to Making Major Estate Decisions!

Do you own U.S. real estate? Do you have a comprehensive estate planning strategy that would maximize your wealth?

Our Advisors Can Help You Plan!
Are you a Canadian planning on buying U.S. Vacation Home?

Owning U.S. real estate can result in significant benefits for Canadians and can open up a primary or secondary source of income. However, it is important to understand the complexities involved in purchasing and owning U.S. real estate for Canadian individuals and businesses.

Need Help Understanding Potential Tax Implications or Planning Opportunities?
2017 Income Tax Return Threshold

You are not required to file income tax return in 2017 if your income threshold is less than $10,400. There are, however, foreign information reporting forms that you may be required to file.

Need Help Filing Your 2017 Income Tax Return?
IRS Form 5472 - Foreign Owned LLCs

5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business

 

Need Help With IRS Form 5472?
IRS Form 5471 - When Do I have to File?

Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations.

Need Help With IRS Form 5471?
US Tax Reform - Estate Tax

To the disappointment of many the Tax Cuts and Jobs Act did not repeal the u.s. estate tax. What it did do is double the base exclusion amount for 2018. The basic solution amount will be eleven point two million dollars per person and twenty two point four million dollars per married couple. This is applicable for U.S. domiciliaries as well as Canadians with U.S. situs assets. The Canada U.S. income tax treaty provides for a prorated unified tax credit for Canadians. Canadians who have worldwide assets under the threshold amount will not be required to pay U.S. estate tax they will however be required to file U.S. estate tax return or U.S. gift tax return. This provision provides tax planning opportunities these need to be taken advantage of before the provision sunsets in 2025.

Take Advantage of this Planning Opportunity!
U.S. Tax Reform - Personal Exemptions

The Tax Cuts and Jobs Act increased the standard deduction for tax payers for single taxpayers from $6,350 to $12,000 for married taxpayers filing a joint return from $12,000 600 to $24,000. This will impact most taxpayers and it should reduce their overall tax burden. However, for taxpayers that have itemized deductions in the past they may actually increase their overall tax. The personal exemption was repealed as well in 2017 the exemption was four thousand and fifty dollars. Therefore, going from 2018 forward if a person’s income is less than $12,000 they won’t be required to file u.s. tax return. This change in the standard deduction impacts on U.S. residents and U.S. citizens and green card holders that are residing outside the United States.

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U.S. Tax Reform - Individual Tax Rates

The Tax Cuts and Jobs Act reduced individual income tax rates across the board. The highest marginal tax rate was reduced from thirty nine point six percent (39.6%) to thirty seven percent (37%). The income tax brackets were also compressed such as all taxpayers will have reduced tax rates. The highest margin rate for single taxpayer starts at five hundred thousand ($500k) and then for married taxpayers that file joint returns the highest marginal rate kicks in at six hundred thousand($600k). These reduction in the individual tax rates impact on Canadian residents that may otherwise be working in United States, U.S. citizens a green card holders expatriates that are residing in Canada and also U.S residents equally.

Take Advantage of this Planning Opportunity!
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