US Canada Taxes

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US Taxes For Canadians

Personal tax, Business tax, Rental Income from US properties, Sale of US properties and Estate taxes all require expert handling to ensure the legal minimum taxes are paid and penalties avoided.

AG Tax Services provides professional cross-border, international tax and accounting services to ensure your taxes are filed properly and on-time.

US Tax Issues for Canadians

In the United States, the income tax system is based on either citizenship or residence. This is not the case in Canada. Canadians living or working in the United States may find themselves taxed on their “world income” in both Canada and the U.S.

The U.S. tax system, administered by the IRS, is complex with many compliance and reporting requirements that are quite different from the Canadian system, administered by the CRA.

Engaging tax specialists with expertise in both the U.S. and Canadian tax systems may no longer be an option for most Canadians that have to deal with these complexities – not an option, just good sense.

The US Canada Tax Treaty

The Canada-United States Income Tax Convention and other amending protocols are intended to prevent “double taxation” and enhance cooperation between the two countries. The 5th Protocol (set of changes) to the convention was designed to:

• Eliminate source-country “withholding” tax on cross-border interest payments

• Allow tax payers arbitration to otherwise insoluble double tax issues

• Ensure that there is no double taxation on immigrant gains

While the convention may provide for certain tax exemptions, this does not include exemption from filing income tax returns id the U.S. Failure to file as prescribed in the U.S. can result in the exemptions sought being denied by the IRS and other penalties being imposed.

Learn more about the Convention Between Canada and the United States of America With Respect to Taxes on Income and on Capital here.