When it comes to filing U.S. tax returns, Canadians often find themselves navigating a complex web of rules and regulations that differ significantly from their home country. In this blog post, we’ll discuss some of the common mistakes Canadians make when filing their U.S. tax returns and offer insights on how to avoid them. Whether you’re a Canadian living in the U.S. or a cross-border investor, understanding these pitfalls is crucial for a smooth tax season. Common Mistakes We Make Not Filing a U.S. Tax Return When Required Using Incorrect Forms for US Tax Filing Overlooking U.S. Estate ..read more

One of the key focus areas in the 2022 federal budget (Budget 22) was to improve housing affordability, particularly for first-time buyers. Here is a summary of the new initiatives proposed in Budget 22, and the existing government programs to support first-time home buyers. New proposals in Budget 22 First Home Savings Account: Budget 22 proposes a new tax-free First Home Savings Account (FHSA) for Canadian residents who are at least 18 years old and have not lived in a home that they owned at any time in the year that the account is opened or during the four preceding calendar years. You can ..read more

Don’t wait until tax time to begin readying information. Tax time can be tricky for almost anyone, but this can be especially true for those who work for themselves. Turning to a CPA when filing – or better yet, in the months before – can help reduce the inevitable headache and possibly the amount of money owed in late fees or missed deductions through several well-prepared steps. 1. Streamlining the approach A common error is the “ready, aim, fire” approach that some people take with their business. The most significant problem is organization and structure, where people jump right out o ..read more

This is from CRA NEWSWIRE December 30, 2021 INTERNATIONAL INCOME TAX ISSUES: CRA AND COVID-19 Section VII of this page has been updated to extend the administrative relief that was provided to Canadian-resident cross-border workers in respect of their 2020 income tax obligations to also apply to 2021. This update does not contain any further extensions of relief. The CRA will continue to monitor the status of COVID-19 related travel restrictions and their potential effect on taxpayers. Further government action may be taken in the future if it is deemed necessary. Guidance on international inc ..read more

Find out about some of the legal and tax implications of a rental unit before you sign on a tenant. For people currently renting or considering renting a portion of the home they own, the tax considerations can be complex and the fallout costly if you don’t do it right. In fact, earning income from renting a portion of your home can be subject to different rules and reporting requirements to the Canada Revenue Agency. Once you start to go through all the considerations, small rentals can get quite complicated. The following are some basic guidelines for renting out a unit in your home. Step 1 ..read more

Before granting an employee’s request to telework from another country, employers need to ensure the organization is meeting all its obligations. Despite the widespread closure of borders, there are more digital nomads than ever – 35 million worldwide. And, with the introduction of vaccination passports and increasing remote work opportunities, a growing number of employees are attracted by the prospect of teleworking from abroad. But, before employees relocate, employers have several legal and tax liabilities to keep in mind. The risks of non-compliance are real for the employer. Failure to m ..read more

When we think about fraud committed against individuals, many of us immediately think of identity theft. Identity theft is the taking of a victim’s private information (such as their social insurance number or birthdate) to use for financial gain. Examples of identity theft include applying for and using a credit card with the stolen information. Our awareness of identity theft as a crime has increased significantly over the past few years, because the issue has been regularly featured on the news and in popular culture, and the risks have been frequently highlighted by financial literacy or ..read more

In Canada, we are fortunate to have access to various benefit, credit and incentives programs delivered to Canadians through the tax system. Dependant and care giver benefits What is the Canada caregiver credit? Do you support a spouse or common-law partner, or a dependant with a physical or mental impairment? The Canada caregiver credit (CCC) is a non-refundable tax credit that may be available to you. Who can you claim this credit for? You may be able to claim the CCC if you support your spouse or common-law partner with a physical or mental impairment. You may also be able to claim th ..read more

Meeting regularly with a CPA to establish and maintain a good framework is just one of the ways to set yourself up for success. Ask any CPA and they will tell you there is no shortage of small business owners who struggle with the ins and outs of their bookkeeping and accounting chores. The biggest problem one can see is lack of good bookkeeping. It’s not very sexy but, the fact is, they sometimes take the importance of bookkeeping too lightly. As a result, it can get quite messy by the time you get to your accountant. If you’re looking to get your business’ finances in shape, here is some ex ..read more

By educating yourself on the process and making sure you have all your important records on hand, you can save yourself a lot of unnecessary worry. You filed your return on time, but now you have received a letter from the Canada Revenue Agency (CRA) asking for more info about the return. Should you be concerned? Not necessarily. As long as you have kept the information the CRA needs to review, the process can be smooth and headache free. Here’s what you need to know. How are returns selected for review? Individuals are generally less likely to be selected for review than businesses ..read more