Why Canadians May Need to File a US Tax Return
Many Canadians assume they will never need a US tax return unless they move to the United States. In reality, a return is often required, or at least strongly recommended, when you have US source income, US withholding, or a US tax filing obligation tied to a specific transaction. This article walks through the most […]
How to Avoid FIRPTA Withholding
Under the U.S. FIRPTA (Foreign Investment in Real Property Tax Act), when a non-resident alien sells U.S. real estate, the buyer (or a designated intermediary) is generally required to withhold 15% of the sale price and remit this amount to the IRS. This withholding is not the final tax amount but rather a prepayment to […]
ITIN and Professional License: A Misguided Requirement
Nowadays, pursuing a professional career in the United States often involves obtaining a professional license. These licenses, issued by the states, are a crucial component of numerous careers, ranging from lawyers and nurses to engineers and accountants. However, some states have adopted a requirement that may seem harmless but can actually cause considerable difficulties: the […]
Selling a Secondary Property in the U.S.: Do You Need to File Taxes if the Sale Price is Under $300,000?
Understanding the Tax Implications of Selling a Property in the U.S. as a Canadian If you are Canadian, and as a prudent owner of a secondary residence in the United States, you are contemplating selling it, you have likely been besieged with rumors, stories, and urban legends about the infamous $300,000 threshold. Are you among […]
Obtaining an ITIN for Renting Your Property on Airbnb: The Challenge and Solutions
Introduction to ITIN Requirement for Airbnb Rentals With the growth of the short-term rental market in the United States, many foreign property owners are looking to rent their real estate on platforms like Airbnb. However, Airbnb now requires an Individual Taxpayer Identification Number (ITIN) from non-resident owners renting their accommodation on the platform. While this […]
Why Not Assume the Title Agent Has Completed Your Form 8288-A Correctly? Crucial Reasons to Consider
The Form 8288-A: A Key Step for Non-Americans Selling Property in the United States When you sell a property in the United States as a non-American, you are likely familiar with Form 8288-A and the importance of filling it out correctly. Although you might think the title agent will handle this task, it is crucial […]
The IRS able to maintain operations even in the event of government shutdown
According to recent union statements, although funded through the provisions of the tax and climate law, the IRS is eagerly awaiting the final guidelines from the Treasury Department. Doreen Greenwald, who presides over the national union of Treasury employees, shared during a press conference that despite the current uncertainty, action plans are primarily based on […]
Obtaining an EIN without an ITIN: Demystifying the Process
Introduction to Obtaining an EIN without an ITIN Many entrepreneurs looking to establish a business in the United States are faced with a question that might seem complex: is it necessary to have an Individual Taxpayer Identification Number (ITIN) to obtain an Employer Identification Number (EIN)? The confusion surrounding this question is understandable, as the […]
Using Your American Residence as Your Primary Residence as a Canadian Resident: A Tax Strategy
The issue of the primary residence is one of the main tax challenges for people owning properties in more than one country. As a Canadian resident who also owns a residence in the US, declaring the latter as your primary residence can offer certain tax benefits while still being a Canadian tax resident. However, this […]
The History of the Internal Revenue Service (IRS)
When we think of taxes, the complexity and nuances of the tax system often come to mind. However, at the heart of this vast machinery lies an institution that has evolved with the changing needs of the United States: the Internal Revenue Service (IRS). Let’s dive deep into this rich history to see how the […]
