Fort Group Analysis of December 12, 2017 Income Sprinkling Revised Legislation
DECEMBER 22, 2017
On December 13, 2017, The Department of Finance, in conjunction with the Canada Revenue Agency, released an updated Technical Backgrounder and new draft legislation related to the draft income sprinkling legislative proposals released on July 18, 2017.
Canadians Paying Tax on U.S. Real Estate Investments
NOVEMBER 10, 2017
In spite of the less then favorable foreign currency exchange rate between Canada and the U.S., many Canadians continue to profit on investments in rental real estate in the U.S. Many Canadians however, are still unsure as to how they are supposed to properly report this rental income for U.S. tax purposes. Generally, a Canadian can meet their income tax obligations related to U.S. rental property to the IRS in one of two ways:
Important Tax Changes for Canadian Private Corporations
JULY 27, 2017
On July 18, 2017 the Department of Finance released the whitepaper blue printing their proposed changes to current tax law, targeting what they perceive to be abuses by private Canadian corporations. These changes, if enacted, could have significant consequences on the current tax planning utilized by many private corporations across Canada. The Department of Finance is currently focusing on three main areas of tax planning in relation to private corporations:
Voluntary Compliance with the IRS for U.S. Citizens Living in Canada
JULY 18, 2017
According to recent estimates there could be anywhere between 900,000 and 2,000,000 U.S. citizens currently living in Canada. As residents of Canada these U.S. citizens living abroad are often correctly filing their Canadian income tax returns. However, many of these individuals are not filing their annual U.S. income tax returns. U.S. citizens often come to us with a variety of reasons for not filing a U.S. tax return while living in Canada. Most commonly a lack of awareness that a U.S. citizen must file an annual tax return regardless of the fact that they no longer live in the U.S. leads to compliance issues that must be resolved.
Fortunately, the IRS has recognized that some U.S. citizens have unknowingly been missing their annual U.S. tax filings and want to get caught up without being exposed to potential tax penalties. In an effort to help these taxpayers the IRS have instituted a series of programs that can allow U.S. citizens living abroad to come into full compliance with their federal tax filings without the fear of recourse from the IRS.
US Tax Filing with the IRS for US Citizens who are Residents in Canada
JULY 17, 2015
Are you a US citizen? Are you a resident of Canada?
The United States is one of the only countries in the world that require their citizens to report their worldwide income even if they are a resident of another country. Even if you have not lived in the US since childhood, if you have your US citizenship, you are required to file US tax returns with the IRS.
Canada-Manitoba Job Grant
JANUARY 30, 2015
The Canada-Manitoba Job Grant is a job grant recently announced by Industry Services (a ministry of the Government of Manitoba) in partnership with the Government of Canada. The grant provides up to $10,000 of funding per employee that attends eligible training programs. The grant is provided over the period of April 1, 2015 to March 31, 2016, and Industry Services is accepting applications now for the upcoming fiscal year. Training must be approved before the course begins in order to be eligible for funding.
Scholarships – Family Members
JANUARY 30, 2015
Did you know that a scholarship provided by an employer to arms length employee’s family members may be excluded from the income of an employee, provided that the scholarship is not provided in lieu of salary?
Deferring Your Old Age Security (OAS)
NOVEMBER 8, 2013
As of July 2013 you may voluntary defer your OAS pension for up to 60 months after the first date of eligibility (depending on birth date) for a higher monthly amount. An individual is eligible for OAS commencing the month following the month of their 65th birthday. The total payments will increase by 0.6% for every month you delay receiving your OAS up to a maximum of 36% at age 70.