Black out text in the Tax Agreement in a few clicks

Aug 6th, 2022
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How to black out text in the Tax Agreement

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foreign [Music] welcome back everyone Michael here with offshore citizen one of the main things that we help our clients with here at offshore citizen myself on our team is international attacks and international taxes you can imagine is quite complicated and frustrating it was that complication and frustration in part that got me into this space and the thing that comes up quite often is if youre dealing with two countries how does it work in terms of the consequences with foreign tax relief in other words if one country contacts you in another country can tax you how does that work what if theres a tax treaty with if theres not a tax treaty today Im going to answer that question for you because Ive had people who are giving me a call and docHubing out and weve had clients who have helped with detailed reports discussing this and its a topic that is greatly misunderstood yet super important to this whole thing so thats were going to cover today before we do here please hit the

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As both a resident of the US and Canadameaning you have a home in and are considered a resident of both countriesyoull likely file both Canadian and US tax returns, which could lead to double taxation.
The CRA is limited in how far back they can look at someones returns in most cases. Normally, a CRA waudit the two or three most recent tax years. If the CRA finds docHub discrepancies in their tax audits they have the authority to go further back and audit previous years.
Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits.
Americans who are physically present in Canada for more than 182 days in a calendar year, or who have residential ties to Canada (such as a home, family, or employment), have to file Canadian taxes that year. As an American citizen or Green Card Holder, they also have to file U.S. taxes.
How to avoid double taxation. Canadian taxpayers avoid double-taxation by making a claim on their return for a foreign tax credit (FTC). That is to say, you get to claim a credit on your Canadian return for an amount of tax paid to a foreign country.
Federal law requires U.S. citizens and resident aliens to report their worldwide income, including income from foreign trusts and foreign bank and other financial accounts.
How far back can you go to file taxes in Canada? ing to the CRA, a taxpayer has 10 years from the end of a calendar year to file an income tax return.
The US expat tax penalties to file an FBAR are more severe and the civil penalty for willfully failing to file an FBAR can be up to the greater of $100,000 or 50% of the total balance of the foreign accounts. Expat non-willful violations that are not due to reasonable cause are subject to a penalty of up to $10,000.

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