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Canadian Business Investment in the US
The US is a natural market for Canadian businesses. While there are many similarities between doing business in Canada and the U.S., it is the differences that require your attention. Canadian corporate tax rates are about a third lower than their equivalent in the U.S., about 25% versus 35%, plus state income tax. If you […]
Consulting in the U.S. – Planning in advance well worth it
February 27, 2014Independent consultants in Canada will often incorporate their practice in order to offer some liability protection not otherwise achieved through a sole-proprietorship structure. From a Canadian income tax perspective, the incorporated consultant will often make the choice between compensating himself by way of salary or receiving dividends from the corporation. In addition, many year-end corporate […]
Online Poker Winnings – Taxable in Canada or the U.S.?
February 14, 2014A recent Canadian tax court case confirmed that an online poker player’s winnings were not subject to Canadian income tax. In Radonjic V. The Queen, 2013 FCC 916, Peter Radonjic, a Coquitlam BC resident, paused his career as a lawyer to play online poker on a full time basis. The case centered on whether his […]
Repaying your Canadian-dollar mortgage? Don’t be surprised by a US tax bill.
February 11, 2014The ownership of real property is often made possible with mortgage and other debt financing. Such mortgage financing offers a U.S. taxpayer the ability to deduct for income tax purposes the interest paid, subject to some limitations. The repayment of the mortgage would not normally be expected to create an income tax liability. However, for […]