Tips for Canada-US Cross-Border Tax


If you are a Canadian resident, but living or working in US or have US rental property:

  • Avoid becoming a US resident while visiting
  • If you own rental real estate in the U.S., elect the net rental income     method
  • Beware of high effective tax rates when considering an investment in a U.S. limited liability corporation
  • Sell real estate to a buyer who will occupy
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Do you have controlled and not-controlled foreign affiliates?

Did you know the CRA is tracking your investment activities in Foreign Entities?

The Canada Revenue Agency (CRA) has many tools at its disposal to track the investment of Canadian taxpayers in foreign entities. On December 31, 2012, a new Form T1134 (Information Return Relating to Controlled and Not-controlled Foreign Affiliates) was released, replacing forms T1134A and T1134B.

What is Form T1134?

On the T1134, a taxpayer who resides in Canada (individual, company, partnership or trust) reports details of its controlled and non-controlled foreign affiliates (non-resident corporation or non-resident Read more

Canadian Receiving Rental Income From U.S. Real Property

Foreign Property Owner’s Tax Return Responsibility During Ownership and Rental of Real Property Interest

First the Canadian owner of US Real Property needs to determine whether the rental income will be taxed as investment income through withholding, or on a net income basis as “ effectively connected with a U.S. trade or business,” without withholding (although the owner may have to file estimated tax returns).  Rental income from real property located in the United States Read more

A Tax Guide for Canadians Buying US Property

Canadians Buying US Real Estate

If you are a Canadian resident intending to buy a residential property in the United States it is important that you are aware of the following tax implications particularly if you intend to rent it for any period of time during the year.

A non-US resident owning a US residential rental property may elect either of the following options:


This option makes little economic sense.


In order to avoid the 30% gross revenue tax on your US property you must file form W8-ECI (Certificate Read more

Tax Planning on Rental properties both in Canada and US

For more information, please contact us at, or call us at 1-613-600-6988.

The tips of buying rental property

If you borrow money to buy or repair a rental property, make sure you arrange things so that the interest on the loan is tax deductible. That means keeping mortgages and lines of credit for the rental property completely separate from loans taken out to buy or improve your principal residence, which are not tax deductible.

Say you have a $100,000 mortgage on your home Read more

Personal vs Company Owned U.S. Real Estate Investment Properties

U.S. investment property is usually defined as real estate that is primarily purchased to buy and sell for a profit in the future or to produce rental income. However, there are several factors to take into account when deciding to purchase an investment property. Understanding the many components of investment property ownership can avoid a lot of headaches down the road. Many investors with real estate investment properties own them personally. A more prudent way to own real Read more

How to Avoid Paying Back Depreciation on a U.S. Rental Property

While you can claim many expenses as write offs in the year you make them, the IRS treats buying a rental property not as an expense but as a conversion — In other words, you’re turning cash into an asset with value, meaning that no net change to your personal wealth has occurred. However, since buildings gradually wear out, the IRS lets you depreciate it by taking a small portion of value as an expense every year, writing down its value and reducing your taxes. With something like a computer Read more

Canadian Residents for U.S. Income Tax Return


What are the basic requirements for U.S. income tax return for Canadian residents (non-residents of U.S.) who conduct business in the U.S., such as providing self employed personal services or have a rental income in the U.S. ?

As a U.S. non-residents who are taxable in the U.S. on their U.S. source income must file form 1040 NR by June 15 each year for the prior calendar year. Married residents of Canada may claim exemptions for a spouse and dependent children who lived with them. Although Read more