Foreign tax credits and Form 1116, exchange rates, filing deadlines in both countries, capital gains and cost basis, investment income, crypto, estimated payments, penalties, audits, and amended returns.
28 guides, each written by a CPA licensed in the US and Canada.
Both countries have an AMT. Canada overhauled its version in 2024. That parallel calculation is the alternative minimum tax.
Cross-BorderAmending a cross-border return is never a one-country event. If the US return changes (higher or lower income, different FTC, corrected filing status).
Cross-BorderCanadian tax rates are higher at most income levels, but the real comparison includes provincial and state tax, sales tax, healthcare costs, and credits.
Cross-BorderCanada and the US both tax capital gains, but the mechanics differ enough that the same sale can produce very different results depending on which country.
Cross-BorderBoth Canada and the US allow capital losses to offset capital gains, with unused losses carrying forward to future years.
Cross-BorderThe US uses cost basis (with step-up at death); Canada uses adjusted cost base (with deemed disposition at death). Covers treaty provisions, foreign tax.
Cross-BorderThe treaty rate on dividends is 15% for portfolio investors and 5% for corporate shareholders who own at least 10% of the voting stock.
Cross-BorderOwing penalties to both the IRS and CRA at the same time. If you filed your Canadian return late, you owe the CRA a late-filing penalty.
Cross-BorderWithdrawing from a retirement account in one country while living in the other triggers withholding, income inclusion, and a foreign tax credit.
Cross-BorderThe CRA also receives reciprocal data from the IRS on Canadian-resident accounts held at US financial institutions. Covers treaty provisions, foreign tax.
Cross-BorderCanadian returns are due April 30, US returns April 15. Extensions, FBAR, and form-specific deadlines all differ. Here is the full calendar.
Cross-BorderBoth Canada and the US tax cryptocurrency dispositions as capital events. Cross-border holders face additional reporting on foreign exchanges, FBAR.
Cross-BorderWhich exchange rate to use, when to use it, and where the CRA and IRS disagree. The CRA wants Canadian dollars. Covers treaty provisions, foreign tax.
Cross-BorderThe US uses quarterly estimated payments. Canada uses instalment notices. Here is how both systems work when you file in both countries.
Cross-BorderWhen Canadian taxes paid exceed the US tax on the same income, the excess foreign tax credit does not disappear. Covers key rules, filing requirements,.
Cross-BorderThe foreign tax credit (FTC) eliminates double taxation by crediting foreign income taxes paid against the US tax on the same income.
Cross-BorderBecause the credit is capped, not at the Canadian tax you paid, but at the US tax attributable to your foreign-source income.
Cross-BorderCanada allows employees and self-employed individuals to claim home office expenses under ITA 8(13) (employees) and ITA 18(12) (self-employed).
Cross-BorderEvery crypto disposal is taxable in both countries, but cost basis, inclusion rates, and reporting forms differ. Covers treaty provisions, foreign tax.
Cross-BorderThe IRS has three years to audit your return, six years if you omit more than 25% of gross income, and no time limit for fraud or unfiled returns.
Cross-BorderThe penalty landscape for cross-border filers. FBAR, Form 5471, Form 3520, late returns, and the CRA equivalents. Covers treaty provisions, foreign tax.
Cross-BorderSelling a US vacation rental as a Canadian resident triggers filings on both sides of the border, and the sequencing matters.
Cross-BorderWhen you can claim the standard deduction as a cross-border filer, when you must itemize, the NRA and dual-status rules, and the SALT cap on state taxes.
Cross-BorderFederal taxes are only half the story. The Canada-US tax treaty coordinates federal taxation between the two countries. Covers treaty provisions, foreign.
Cross-BorderThe CRA and IRS can help each other collect tax debts under the treaty's mutual collection assistance article. Covers treaty provisions, foreign tax.
Cross-BorderThe One Big Beautiful Bill made TCJA rates permanent and raised the estate exemption to $15 million. Here is what changed for cross-border filers.
Cross-BorderHow the US wash sale rule and Canada's superficial loss rule interact for cross-border investors harvesting tax losses across both countries.
Cross-BorderCross-border filers have year-end planning opportunities in both countries, and the deadlines do not always align. Covers treaty provisions, foreign tax.