Tax – U.S. Cross-Border & International

U.S. Cross-Border Tax

U.S. Cross-Border Tax is a complex area as there are many rules and regulations that can potentially impact Canadian residents as well as U.S. residents and citizens (including “expats”). The penalties for non-compliance can be very punitive.

Our Respective Tax Systems:
It should be noted that the U.S. income tax system is based on both citizenship and lawful permanent resident status, not just on residency. This trait, which differentiates the U.S tax system from most other global tax systems, including Canada’s, adds significant complexity.

Below is information about U.S. cross-border Tax at KT Partners LLP, divided into four sections, A-D. After that, we briefly discuss International Tax.

A. Our U.S. Cross-Border Tax Preparation Services

Here is a list of our U.S. cross-border tax preparation and special filing services:

• • • Canada tax preparation, all provinces.
    • U.S. tax preparation, all states.
    • Tax preparation for Americans who live, work or invest in Canada.
    • U.S. Reporting of Canadian financial accounts, e.g. FinCEN Report 114 (FBAR), Form 8938.
    • Canadian departure return and deemed disposition filings.
    • Canada-US Tax Treaty elections to eliminate double taxation.
    • Canadian foreign tax credit (FTC) claims in the U.S.
    • Reporting of RRSP, TFSA, RESP accounts in the U.S.
    • Reporting of cross-border inheritances in the U.S.
    • Tax preparation/planning for owners of cross-border rental properties.

B. Our U.S. Cross-Border Tax Planning Services

Here are some of our U.S. cross-border tax planning services:

• • • Tax planning services for Canadians moving to the U.S.
    • Tax planning services for Americans moving to Canada.
    • U.S. and Canadian tax residency status determination, including applicable exemptions.
    • Tax advice for individuals repatriating to either Canada or the U.S.
    • U.S. estate tax issues for Canadian residents holding U.S. investments/real estate.

In short, we support individual clients and their families as:

• • • Canadians and Americans living in their home country.
    • Canadians living in the U.S. or
    • U.S. expats living abroad.

We also support their business filings and related planning regardless of where their businesses operate or are incorporated. 

C. Checklist of Individual Cross-Border Tax Topics

Below is a searchable checklist of 37 individual cross-border topics grouped into 6 categories that may apply to a given client. Looking at the length and content of this checklist, it’s easy to see what a complex topic U.S. cross-border tax is and why taxpayers need help navigating through it.

D. Our Cross-Border Tax Practice

We have a strong U.S. cross-border tax practice that operates in both our Vaughan and Toronto offices. Individual Partners on Our Team have U.S. CPA designations and have worked on these matters for many years. Our Miami office helps us extend our reach into the U.S.

Our tax specialists help our clients with:

i) preparing U.S. and Canadian tax returns and other filings to ensure compliance with applicable laws, interpretations, rulings and policies in both countries; and

ii) developing cross-border tax strategies tailored to meet their individual, corporate and trust/estate needs.

International Tax

International tax issues apply where Canada and a non-U.S. foreign country are involved. In these scenarios, there is often an applicable tax treaty between the two countries that may be applied to establish an appropriate tie-breaker for residency and to eliminate or reduce potential double-taxation.

Deemed residency rules and withholding tax on various forms of income can also be identified for non-residents. Planned emigration and immigration may also be reviewed. Departure tax may apply.

The Bottom Line

KT Partners LLP would be pleased to review your U.S. cross-border and international tax filing/planning requirements with you. A scheduled consultation with one of our tax specialists is often a great starting point.