A certified public accountant is the best person to take care of your tax filing necessities. They have the skill and the knowledge when it comes to tax codes and other requirements for the proper filing of your taxes. Now, if you want a better working relationship with your accountant, it would be best to familiarize yourself with bookkeeping tips so you can help as much as you can.

From the beginning, there should be an organized and efficient system of bookkeeping. It all starts with your day to day system. If you can organize your finances and transactions daily, by the time taxes have to be filed, you will have no trouble doing so. You will need to keep a folder or a spreadsheet so your accountant knows where to look into.

It is important to save everything in a file, such as bills, receipts, bank forms, insurance papers and the like. When January hits, various financial institutions will be sending you form for your tax filing, do not throw these away but just keep it in a folder. It will come in handy. Lost financial documents takes a lot of legwork before it can be retrieved so double check first before throwing anything away.

It is always best to have a back up. Learn from your bookkeeping downtown Toronto professional. They always have a back up so when their computer crash or when they replace some of their files, they have a vault or another computer to count on. Keep back ups for your hard copies and your digital files as well.

You should create a clear trail for auditing. Every reliable bookkeeper Toronto has sets up a system just for the monitoring of the daily, monthly, quarterly and even yearly transactions. This will help you sort out through your files if ever you have a missing figure in one of your calculations.

Lastly, you should also be able to set up a system that can calculate your income and expenses. Segregate your fixed costs from your variable costs. If you are having trouble understanding these tips and setting up the necessary systems, you can always hire a bookkeeper Toronto has to take care of these things for you.

January

15th

Personal Income Tax Estimated Tax Payment Due for 4th Quarter of last year

Partnership and LLC Estimated Tax Payments Due (For payments required to be made on behalf of partners and members)

 S Corporation Estimated Tax Payments Due (For payments required to be made on behalf of nonresident shareholders) 

Personal Income Tax Estimated Tax Payment Correction Due for Shareholders of Corporations Subject to Mandatory S Corporation Filing

20th

Sales Tax Return for Monthly Filers Due

February

1st

Employer’s Quarterly MCTMT Return Due

MCTMT Estimated Tax Payment Due for 4th Quarter of last year

Partnership and LLC Estimated MCTMT Payment Due (For payments required to be made on behalf of New York nonresident individual partners)

Partnership, Limited Liability Company, and Limited Liability Partnership Filing Fee for Calendar Year Filers Due

Employer’s Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return Due

22nd

Sales Tax Return for Monthly Filers Due

March

15th

Corporation Tax Return for Calendar Year Filers Due

Corporation Tax Estimated Tax Payment Due with Return or Extension 

S Corporation Tax Return for Calendar Year Filers Due

22nd

Sales Tax Return for Quarterly Filers Due

Sales Tax Return for Monthly Filers Due

Sales Tax Return for Annual Filers Due 

April

15th

Personal Income Tax, Partnership and Fiduciary Tax Returns Due for Calendar Year Filers 

Personal Income Tax Estimated Tax Payment Due

Partnership and LLC Estimated Tax Payments Due (For payments required to be made on behalf of partners and members)

S Corporation Estimated Tax Payments Due (For payments required to be made on behalf of nonresident shareholders)

20th

Sales Tax Return for Monthly Filers Due 

30th

Employer’s Quarterly MCTMT Return Due

MCTMT Estimated Tax Payment Due

Partnership and LLC Estimated MCTMT Payment due (For payments required to be made on behalf of New York nonresident individual partners)

MCTMT Return for Individuals

Employer’s Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return Due

May

20th

Sales Tax Return for Monthly Filers Due 

June

15th

Corporation Tax Estimated Tax Payments for Calendar Year Filers Due

Personal Income Tax Estimated Tax Payments Due 

Partnership and LLC Estimated Tax Payments Due (For payments required to be made on behalf of partners and members)

S Corporation Estimated Tax Payments Due (For payments required to be made on behalf of nonresident shareholders)

21st

Sales Tax Return for Quarterly Filers Due

Sales Tax Return for Monthly Filers Due

July

20th

Sales Tax Return for Monthly Filers Due

August

2nd

Employer’s Quarterly MCTMT Return Due

MCTMT Estimated Tax Payment Due

Partnership and LLC Estimated MCTMT Payment Due (For payments required to be made on behalf of New York nonresident individual partners)

Employer’s Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return Due

20th

Sales Tax Return for Monthly Filers Due

September

15th

Personal Income Tax Estimated Tax Payments Due

S Corporation Return Due for Calendar Year Filers Who Requested an Extension

Corporation Tax Estimated Tax Payments for Calendar Year Filers Due

Corporation Tax Return Due for Calendar Year Filers Who Requested Six Month Extension to File 

Partnership and LLC Estimated Tax Payments Due (For payments required to be made on behalf of partners and members)

S Corporation Estimated Tax Payments Due (For payments required to be made on behalf of nonresident shareholders)

Partnership and Fiduciary Returns Due for Calendar Year Taxpayers Who Requested an Automatic Five Months Extension to File

20th

Sales Tax Return for Monthly Filers Due

Sales Tax Return for Quarterly Filers Due

October

15th

Personal Income Tax Returns Due for Calendar Year Taxpayers who Requested an Automatic Six Month Extension to File

20th

Sales Tax Return for Monthly Filers Due

November

1st

Employers Quarterly MCTMT Return Due

MCTMT Estimated Tax Payment Due

Partnership and LLC Estimated MCTMT Payment Due (for payments required to be made on behalf of partners and members)

Employer’s Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return Due

22nd

Sales Tax Return for Monthly Filers Due

December

15th

Corporation Tax Estimated Tax Payments for Calendar Year Filers Due

20th

Sales Tax Return for Monthly Filers Due

US income tax, estate tax and various other laws treat foreign nationals on different footings depending on whether they have a US resident or non-resident status. US laws lay down certain criteria to ascertain resident/non-resident status.

A citizen of Canada is subjected to two tests to determine his/her residence status for tax purposes.

One- if he holds a US green card he is treated as a lawful permanent US resident. His presence /absence in the US is not considered. And

Two- If he had a substantial presence in the US he is treated as a US resident. This means being present in the US for 183 days in the preceding three years in the following manner.

. If he has been present in the US for at least thirty days during the current calendar year

. If the sum of the number of his US days in the current financial year, 1/3rd of US days in the first preceding year and one sixth of US days in the second preceding year equals or exceeds 183 days.

Factors like inability to leave the US due to ill health or being present as part of a govt. delegation and certain other exceptions are taken into account while calculating the total of 183 days mentioned above. Even when substantial presence is established, meeting certain other additional criteria may still attach a non-resident status to a Canadian citizen.

A US resident alien is treated more or less similarly as a US citizen for tax purposes. He has to file tax returns and pay taxes on income received from all sources in the US and/or anywhere in the world. The resident status entitles him to all the deductions, personal exemptions and other benefits available to US citizens while computing taxable income.

A non-resident on the other hand, subject to certain exceptions, usually has to pay tax on income he receives from US sources only. In addition, his non-resident status and limited tax exposure make much less of exemptions and deductions available to him as compared to his resident counterpart.

When a Canadian resident buys a condo in Florida or other real property located anywhere in the US and rents it out, there is a withholding tax of 30% applicable on the rent. This means that the tenant is liable to withhold 30% of the rent and pay it to the IRS. By filing a US tax return and paying tax on the net rental income, the 30% gross withholding tax can be avoided.

There may be significant expenses such as maintenance; property management expenses, mortgage interest, property taxes etc. that can reduce the taxable amount considerably, and the resulting tax at marginal rates can be substantially lower. Once the net rental system is elected, it usually cannot be revoked. The Canadian property owner needs to provide the tenant with form IRS 4224 to avoid deduction of 30% withholding tax.

When a Canadian resident sells any property that he owns within the US, the Foreign Investment in Real Property Tax Act-1980(FIRPTA) mandates a 10% withholding tax on the gross sale price. However, it is possible to offset this tax against US income tax payable on any capital gain on the sale. A refund can be claimed if the withholding tax is above the tax liability.

This provision is subject to two exceptions.

a) When the property is sold for less than $300000 and the purchaser intends to use it for his principle residence for at least 50% of the time for the next two years he pays the full price to the seller instead of withholding 10% to remit to the IRS.

b) When the seller obtains a withholding certificate from the IRS stating that US tax liability is expected to be less than ten percent of the sale price. The amount of tax to be withheld, if any, would be mentioned on the certificate.

When a Canadian resident breathes his last owning property in the US, federal estate tax is imposed, which can range from 18 to 45% in 2007. Under article XXIX B of the Canada-US tax treaty, unified credit can be applied to reduce or eliminate estate taxes.

1. I do have some amount invested in Equity, but I didn’t buy or sell any shares.
2. I have a monthly SIP to invest in a Mutual Fund. I bought it but didn’t sell any.
3. I am an NRI.

I appreciate your help !
Also, which form should I fill ?

It is essential to get a hold on your taxation status immediately after moving abroad, especially if you are planning to settle there for a prolonged period. In fact, the taxation status of an individual can often dictate the amount of tax he/ she will pay. This may even help you to gain capitals or income taxation breaks. On the other hand, with an improper taxation status you can even come across double taxation issues. In fact, such matters can also raise issues relating to the residence status of an individual.

Thereby, it is important that you understand the tax related laws and rules of your home country as well as of the new country, where you are planning to settle. In addition, you will need to focus more towards international tax planning.

There are a number of professional groups who offer these types of services. In general, these types of tax professionals fall into 4 categories:

1. Local Accountants

You will need to appoint a local accountant in your home country who will help you to understand the various perspective of international taxation. In fact, you will also need to appoint an accountant in your new country of residence, as it is unlikely that a local accountant in your home country will have in depth knowledge about the tax related laws, rules and breaks of another country. Thereby, it is better to employ two professionals in order to ensure that all your potential liabilities will be well covered in both the countries.

2. Professional International Tax Planners

These professional tax planners can help you to build a proper taxation status by combining their knowledge of international accountancy and financial planning. In addition, they will help you to understand the advantages and disadvantages of your present taxation status. Moreover, the international tax planners help to cover all your taxation liability as well as to get the offshore advantages that you are entitled to. They will even formulate a unique legal plan for you so as to lower your total taxation liability.

3. International Accountants

International accountants can also help in your international taxation planning. In fact, they have too a good understanding about international tax related rules and breaks. However, appointing an international accountant will be of no use if your prime concern is about offshore banking advantage and investment. They can actually advise you on the residency related rules and laws.

4. International Financial Advisers

The international financial advisers can help you to understand the offshore world and can also advice you how to position your financial assets in your new country of residence. Moreover, they can help you to limit or negate your overall taxation liability.