U.S. & CANADIAN TAX PREPARATION
- U.S. citizens, permanent residents & Nonresident Aliens
- Domestic U.S. & Multinational corporations
- Expatriates, Inbound, Outbound, Tax Treaties 

CONTACT:
Larry Flores
Tel. (604) 518-5941
E-mail:  larry@lflores.com

Mailing Address:
1313 E. Maple Street
Ste. 201 #490
Bellingham, WA 98225 USA 
 

BACKGROUND
Prior to establishing his practice, Larry Flores has worked as a Tax Manager at professional firms in Canada (KPMG Vancouver/Calgary & PwC Vancouver) and in California (KPMG & Rowbotham & Co.)  

Individuals

The information in this website is for general information only.  Individuals and businesses should obtain independent professional tax advice.

Circular 230 (U.S. Treasury Department) disclosure:  The information included in this website is not intended or written to be used, and it cannot be used by any taxpayer, for the purposes of avoiding federal tax penalties that may be imposed on the taxpayer.

OUTLINE OF TAX TOPICS:

INDIVIDUALS – NONRESIDENT ALIENS
(e.g. Canadians visiting, working, and investing in the U.S.)

Visitors
- Days in U.S. may lead to U.S. residency (Substantial Presence Test)
- Canadian treaty benefits to avoid residency
- Federal tax filing obligation

Workers
- Performance of services is considered U.S. source income
- Independent services & dependent services
- Federal and State tax filing obligation

Investors
- Involvement in Canadian joint ventures and/or partnerships with U.S. business or assets (U.S. source income)
- Foreign partners (tax withholding)
- Direct vs. Indirect ownership of U.S. properties (e.g. real estate, US partnership interest)
- Federal and State tax filing obligation - real estate (gross withholding vs. net taxation of rent; FIRPTA tax withholding on sale);  marketable securities (withholding vs. waiver certificates)



INDIVIDUALS – U.S. CITIZENS & GREEN CARD HOLDERS
(e.g.  U.S. individuals in Canada)

Living or Working Outside the U.S.
- Residents of Canada
- Married to Canadian resident 
- Owns Canadian and other non-U.S. businesses 
- Canadian and U.S. Tax compliance 
- U.S. person may be able to exclude Foreign Earned Income
- Other compliance (e.g. Department of Treasury, Report of Foreign Accounts; penalty for non-compliance)
- U.S. Trusts have Canadian tax implications
- Canadian Trusts have U.S. tax consequences and reporting requirements


U.S. Estate and Gift Tax– Federal and Certain States
- Applies to world-wide assets of U.S. citizens, green card holders, and “certain expatriates”
- Applies to “U.S. situs” assets of non-resident
- Tax treaty relief for Canadian residents
- Foreign tax credit: U.S. tax to be applied against Canadian income tax allowed under Treaty
- For Canadian tax, some provinces do not allow U.S. estate & gift tax as FTC
- Consider gift tax for any transfers made by a U.S. citizen (e.g. certain Canadian tax-free reorganizations may trigger US taxation) 

Businesses

The information in this website is for general information only. Individuals and businesses should obtain independent professional tax advice.

Circular 230 (U.S. Treasury Department) disclosure: The information included in this website is not intended or written to be used, and it cannot be used by any taxpayer, for the purposes of avoiding federal tax penalties that may be imposed on the taxpayer.


OUTLINE OF TAX TOPICS:

CANADIAN BUSINESSES (CORPORATE, PARTNERSHIP, TRUSTS)

- “Doing Business” in the U.S. and "Permanent Establishment"

- Permanent Establishment defined in Tax Treaty: place of management, a branch, an office, a factory, a workshop, or a construction site that exists for more than twelve months - some exceptions: storage, display, or delivery of goods; use of independent agents

- Canadian Corporation:  Tax treaty benefit for those with no “permanent establishment”; file treaty-based protective return; penalty for non-disclosure of treaty position

- Federal tax filing 

- Sales and use tax; State “nexus"

- Expanding into the U.S. market - legal, business, and tax considerations

- U.S. branch vs. corporate subsidiary (“C” Corp., “LLC”, “S Corp”, “Partnerships”)

- Repatriation of funds to Canada - withholding obligation on U.S. payer

- Effects of having a U.S. subsidiary on certain Canadian tax planning (e.g. may affect eligibility for capital gain exemption)
 
- Payments by Canadian to U.S. and other non-residents (e.g. Canadian tax withholding)

 
 Canadian Tax

The information in this website is for general information only. Individuals and businesses should obtain independent professional tax advice.

Circular 230 (U.S. Treasury Department) disclosure: The information included in this website is not intended or written to be used, and it cannot be used by any taxpayer, for the purposes of avoiding federal tax penalties that may be imposed on the taxpayer.


CANADIAN TAXATION TOPICS

INBOUND
(e.g. New immigrant; Returning Canadian person; Individual coming to work in Canada; etc.)

- Canadian "resident" is subject to tax on worldwide income
- Are you a Canadian resident? Primary and other residential ties to Canada
- Consider pre-Canadian residency tax planning
- Consider any tax consequences that can arise from leaving the previous country (e.g. does country have "departure tax" consequences? will there be "disposition" taxes arising from emigration?)
- May simultaneously be a resident of another country depending on circumstance;consult Tax treaty for "tie-breaker"
- Assets held upon Canadian residency (e.g. determine and document "cost" for Canadian tax purposes)
- Canadian tax return filing obligation (resident reports worldwide income)
- Avoidance of double-taxation using income tax treaty (if any)
- Foreign source income? Use of foreign tax credit against Canadian tax


OUTBOUND
(e.g. Emigrant; Leaving Canada to work or live overseas; etc.)

- Are you still considered a Canadian "resident"? Primary and other residential ties to Canada
- Do you want to continue being a Canadian resident? Plan accordingly.
- Do you want to cease Canadian residency? Plan accordingly.
- Consider pre-departure tax planning (tax consequences of ceasing residency; departure tax; consider election to adjust basis if available under treaty, etc.)
- Canadian tax return filing obligation (even if non-resident, individual has obligation to file and report Canadian source income)
- Canadian tax withholding on certain Canadian source income earned by non-resident (e.g. services rendered in Canada; interest, dividend, or rent from Canadian payers; etc.)


NON-RESIDENT OF CANADA
- owning Canadian real estate (Canadian tax compliance, file tax returns, file withholding waiver requests)
- rendering services in Canada (payor required to withhold tax in respect of services in Canada; tax compliance)
- selling Canadian real estate (buyer required to withhold tax; consider applying with CRA in order to reduce withholding)
- earning Canadian source investment income such as interest, dividend, royalty, etc. (payor required to withhold tax)