Page 7 - Lets Talk Winter 2015 | Lipton Chartered Accountants
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Let’s Talk Winter 2015 www.liptonllp.com
In the US or less, the US will tax the gain on the sale Canadian Foreign Reporting Disclosure
at graduated federal tax rates (maximum of
Withholding and Income Tax – Anyone It should also be noted that if you have a bank
(Canadian or American) who purchases US real 39.6%). State taxes may also apply. account physically in the US that has more
estate from a Canadian (person or otherwise) than C$100,000 at any point in any year, you
is obligated to withhold and remit 10% of In Canada must file Form T1135 with your Canadian
the gross sale proceeds to the IRS (unless the Income Tax – You must report any capital tax return to disclose not only that bank
gross sale price is less than US$300,000 and the gain on the sale of the US property on your account, but any other foreign property and
purchaser is acquiring the property for use as a Canadian tax return, which will be subject to related income in that year (a property owned
home subject to certain conditions). To reduce Canadian tax at approximately 25% (based on primarily for personal use such as a vacation
or eliminate this withholding tax, in certain the top combined marginal tax rate in Ontario property is exempt from this disclosure).
circumstances, the vendor may apply for a during 2014 on taxable income exceeding
withholding certificate from the IRS, which $220,000). You can claim a tax credit for US This article has highlighted some of the
allows the withholding tax to be calculated on a taxes paid to the IRS on your Canadian tax key considerations and implications for
net gain rather than on gross proceeds. return to avoid double taxation. ‘snowbirds’, however, it is not comprehensive
as several of these areas are complex and fact-
Canadians are required to file a US income OTHER CONSIDERATIONS driven. If you need further information and
tax return to report any capital gain/loss advice, please contact us. Your Lipton LLP
Crossing the Border – Disclose Cash
on the sale of the US property and will advisers can help and provide some solutions.
pay US capital gains tax on any profit. Any If you are entering or leaving Canada and are
withholding tax remitted at the time of sale carrying $10,000 or more, you must complete,
can be used against this tax owing on the US sign and submit reporting Form E677, Cross-
Ilana zEIDEl
income tax return. Border Currency or Monetary Instruments
Report – Individual. This also applies to
If the US property has been owned for more $10,000 in a foreign currency including any Having been in public accounting since 1999,
than one year before sale, the US will tax the securities such as travellers’ cheques, stocks Ilana’s career as a Chartered Accountant
gain on the sale as a long-term capital gain and bonds. Failing to report incurs penalties brings with it a wealth of hands-on experience
with a maximum federal tax rate of 20%. If and possible seizure or forfeiture, which can with respect to taxation services to small and
the US property has been owned for one year occur at the US/Canada customs checkpoint. medium-sized entities across many industries.
Ilana has provided the firm’s corporate and
individual clients with uncompromising
Tax Calendar guidance and advisory services with respect to
tax planning needs.
izeidel@liptonllp.com
Individuals Deadline in 2015
Personal Tax Returns:
Filing of returns
General April 30
Self-employed individual and spouse June 15
Final Payment of income tax
General April 30
Self-employed individual and spouse April 30
Deadline for contributing to an RRSP March 2
for the 2014 tax year
Trust Income Tax and Information Returns Within 90 days of the trust’s year-end
(T3 Return, the related T3 slips, NR4 slips, and (March 31 for the majority of inter-
T3 and NR4 summaries) vivos trusts)
Businesses Deadline in 2015
Information Returns (T4, T4A, T4A-NR, T5) March 2
Information Return (NR4) March 31
7
Let’s Talk Winter 2015 www.liptonllp.com
In the US or less, the US will tax the gain on the sale Canadian Foreign Reporting Disclosure
at graduated federal tax rates (maximum of
Withholding and Income Tax – Anyone It should also be noted that if you have a bank
(Canadian or American) who purchases US real 39.6%). State taxes may also apply. account physically in the US that has more
estate from a Canadian (person or otherwise) than C$100,000 at any point in any year, you
is obligated to withhold and remit 10% of In Canada must file Form T1135 with your Canadian
the gross sale proceeds to the IRS (unless the Income Tax – You must report any capital tax return to disclose not only that bank
gross sale price is less than US$300,000 and the gain on the sale of the US property on your account, but any other foreign property and
purchaser is acquiring the property for use as a Canadian tax return, which will be subject to related income in that year (a property owned
home subject to certain conditions). To reduce Canadian tax at approximately 25% (based on primarily for personal use such as a vacation
or eliminate this withholding tax, in certain the top combined marginal tax rate in Ontario property is exempt from this disclosure).
circumstances, the vendor may apply for a during 2014 on taxable income exceeding
withholding certificate from the IRS, which $220,000). You can claim a tax credit for US This article has highlighted some of the
allows the withholding tax to be calculated on a taxes paid to the IRS on your Canadian tax key considerations and implications for
net gain rather than on gross proceeds. return to avoid double taxation. ‘snowbirds’, however, it is not comprehensive
as several of these areas are complex and fact-
Canadians are required to file a US income OTHER CONSIDERATIONS driven. If you need further information and
tax return to report any capital gain/loss advice, please contact us. Your Lipton LLP
Crossing the Border – Disclose Cash
on the sale of the US property and will advisers can help and provide some solutions.
pay US capital gains tax on any profit. Any If you are entering or leaving Canada and are
withholding tax remitted at the time of sale carrying $10,000 or more, you must complete,
can be used against this tax owing on the US sign and submit reporting Form E677, Cross-
Ilana zEIDEl
income tax return. Border Currency or Monetary Instruments
Report – Individual. This also applies to
If the US property has been owned for more $10,000 in a foreign currency including any Having been in public accounting since 1999,
than one year before sale, the US will tax the securities such as travellers’ cheques, stocks Ilana’s career as a Chartered Accountant
gain on the sale as a long-term capital gain and bonds. Failing to report incurs penalties brings with it a wealth of hands-on experience
with a maximum federal tax rate of 20%. If and possible seizure or forfeiture, which can with respect to taxation services to small and
the US property has been owned for one year occur at the US/Canada customs checkpoint. medium-sized entities across many industries.
Ilana has provided the firm’s corporate and
individual clients with uncompromising
Tax Calendar guidance and advisory services with respect to
tax planning needs.
izeidel@liptonllp.com
Individuals Deadline in 2015
Personal Tax Returns:
Filing of returns
General April 30
Self-employed individual and spouse June 15
Final Payment of income tax
General April 30
Self-employed individual and spouse April 30
Deadline for contributing to an RRSP March 2
for the 2014 tax year
Trust Income Tax and Information Returns Within 90 days of the trust’s year-end
(T3 Return, the related T3 slips, NR4 slips, and (March 31 for the majority of inter-
T3 and NR4 summaries) vivos trusts)
Businesses Deadline in 2015
Information Returns (T4, T4A, T4A-NR, T5) March 2
Information Return (NR4) March 31
7
