Cross border services

Hello

If you are not a US person (resident alien or Citizen) you should not complete the W9. You would complete a W8.

If you are in the US performing this work the IRS requires that you file a US return and you will need an ITIN to file or open a bank account.

You can apply for an ITIN by filing form W7.

If you want to open a bank account in the US they generally require a Tax Number (ITIN)

By completing the W8 you are saying that you are not doing this work in the US so no US tax is on you for this work performed in Canada.

December 28, 2021

Cross border services

Hello If you are not a US person (resident alien or Citizen) you should not complete the W9. You would complete a W8. If you are in the US performing this work the IRS requires that you file a US return and you will need an ITIN to file or open a bank account. You can apply for an ITIN by filing form W7. If you want to open a bank account in the US they generally require a Tax Number (ITIN) By completing the W8 you are saying that you are not doing this work in the US so […]
December 28, 2021

HST for goods or services exported from Canada

As a Canadian residing in Canada and not being employed by this company in the US you have no obligation to pay taxes in the US nor to comply with any employment or tax-related issue relating to the US. The IRS has no jurisdiction or interest in what you do. The US company is entirely mistaken. I suggest you speak to your accountant. There is no reason that I can see that you would be billing them HST. This is a services being provided to someone or entity outside Canada. You do not collect HST for goods or services exported […]
December 28, 2021

Tax on consulting services

You don’t have to charge a GTS/HST at this point in time unless you already have a GST/HST account. If you don’t you need to open one and start charging tax when your income exceeds the threshold level of $30,000 in a year.
December 28, 2021

Claim the mortgage payment as a deduction

Hello and thank you for posting your question. You can generally claim interest on property purchased for the use of your business. You can choose to capitalize interest on the money you borrow: to buy depreciable property to buy a resource property for exploration and development When you choose to capitalize interest, add the interest to the cost of the property or exploration and development costs instead of deducting the interest as an expense. As a general rule, real property transactions are taxable, even when the vendor is a small supplier. In such cases, the vendor must collect and remit […]
December 24, 2021

Family tax return

Married or common-law couples still file separate tax returns. A spouse may be able to claim you as a dependent and/or claim your tuition as a tax credit to reduce their taxes payable up to $5000.
December 24, 2021

Money withdrawn from my corporation

If you have drawn income from the Corporation, you are required to file a T4. The amount should be added to the T4 for all of the income that you have taken out during the year in the form of a salary or owner’s compensation. The Corporation is responsible for filing a T4 summary report and the T4 slips to the Canada Revenue Agency.
December 24, 2021

Salary from corporation

Yes, you are eligible to claim personal deductions.
December 21, 2021

capital gains on a primary residence

When you sell your principal residence or when you are considered to have sold it, usually you do not have to report the sale on your income tax and benefit return and you do not have to pay tax on any gain from the sale. The housing unit representing the taxpayer’s principal residence generally must be inhabited by the taxpayer or by his or her spouse or common-law partner, former spouse or common-law partner, or child. A taxpayer can designate only one property as his or her principal residence for a particular tax year.  There is no mention of time duration. Primary residence is […]
December 21, 2021

Canada’s departure tax

When you leave Canada, you are considered to have sold certain types of property (even if you have not sold them) at their fair market value (FMV) and to have immediately reacquired them for the same amount. This is called a deemed disposition and you may have to report a capital gain (also known as departure tax). The property you owned before being resident in Canada is not included. Some of the exceptions to tax upon leaving are: Canadian real or immovable property, Canadian resource property, and timber resource property Canadian business property (including inventory) if the business is carried […]
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