Posted on: 07-03-07 14:31:45
Hi,
I just landed in Vancouver and want to check how I can work for my current US employer from Canada.
I will be working from home if my employer permits.How taxation works?
Do I get rent benefit if I use my house as office?
I will start working for US employer after June so that will be 6 months in USA and 6 months in Canada so I will have to file tax return in both countries.
Please explain how this works.
Thanks
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Desi Lion
Quote:
Originally posted by ramrao
Hi,
I just landed in Vancouver and want to check how I can work for my current US employer from Canada.
I will be working from home if my employer permits.How taxation works?
Do I get rent benefit if I use my house as office?
I will start working for US employer after June so that will be 6 months in USA and 6 months in Canada so I will have to file tax return in both countries.
Please explain how this works.
Thanks
Rent benefit? You mean claiming rent as an expense? You will not be able to do that if you are working for your US (or any) employer. However, if you are working as a consultant and have a registered business (or have a business number), you will be able to claim your rent as your business expense.
Your tax situation is another question and depends on so many things (like your US residency status for that tax year, visa status, cdn residency/visa status, etc.)
cdn_dude :
Yes I want to claim rent as an expense(I may purchase house as well) and I am ready for a company in Canada.
I am working in USA on H1b visa so I am US resident and I will move to Canada in June or July as Canadian PR(I am already a PR but waiting for PR card).
Thanks
-----------------------------------------------------------------
Desi Lion
Quote:
Originally posted by ramrao
cdn_dude :
Yes I want to claim rent as an expense(I may purchase house as well) and I am ready for a company in Canada.
I am working in USA on H1b visa so I am US resident and I will move to Canada in June or July as Canadian PR(I am already a PR but waiting for PR card).
Thanks
To claim business expense, you have to get a business number or register your business with CRA once you arrive in Canada. You might want to ask your clients in the US to pay you on 1099 basis, rather than W2. (W2 is generally for employees and 1099 is generally for client-consultant relationship)
For 2007 taxes: You will pay tax returns to both US and Canada. But on cdn tax return, you will have to claim foreign tax credit for the taxes withheld/paid to the foreign country (US).
if I remember correctly there is a form called T2200 ( issued by the employer ) if employee is working from home to claim expenses ...
But I am not sure if a US employer will be able to issue it ( or something similar ) which will be acceptable here in canada ...
also you can register yourself as a business or sole proprieter to claim business expense ( check this with a Tax consultant ) ...
but a tax consultant should be able to guide you better ...
Quote:
Originally posted by cdn_dude
Quote:
Originally posted by ramrao
Hi,
I just landed in Vancouver and want to check how I can work for my current US employer from Canada.
I will be working from home if my employer permits.How taxation works?
Do I get rent benefit if I use my house as office?
I will start working for US employer after June so that will be 6 months in USA and 6 months in Canada so I will have to file tax return in both countries.
Please explain how this works.
Thanks
Rent benefit? You mean claiming rent as an expense? You will not be able to do that if you are working for your US (or any) employer. However, if you are working as a consultant and have a registered business (or have a business number), you will be able to claim your rent as your business expense.
Your tax situation is another question and depends on so many things (like your US residency status for that tax year, visa status, cdn residency/visa status, etc.)
Quote:
Originally posted by blabber
if I remember correctly there is a form called T2200 ( issued by the employer ) if employee is working from home to claim expenses ...
But I am not sure if a US employer will be able to issue it ( or something similar ) which will be acceptable here in canada ...
also you can register yourself as a business or sole proprieter to claim business expense ( check this with a Tax consultant ) ...
but a tax consultant should be able to guide you better ...
Do not get confused with the forms that are issued by cdn employers. You do not need them at all if you are going to be paid from outside of Canada. They cannot issue any T---- forms. Just keep all copies of your invoices and the bank transcations/pay checks.
As suggested by the "blabber", Getting advice from the tax consultant is the best thing.
well my point is that even if you are a permanent employee , you can still claim expenses for working from home provided your employer ( Canada ) has authorised you to work from home ( and there is a T2200 form to confirm that by employer ) ...
so similarly the US employer should be able to give something ( of course it will be for US income ) , which will reduce your income in US so effectively will reduce your income in Canada as well ( US income is part of world income ) ...
but again check with some expert in Canadain and US taxation ...
Quote:
Originally posted by cdn_dude
Quote:
Originally posted by blabber
if I remember correctly there is a form called T2200 ( issued by the employer ) if employee is working from home to claim expenses ...
But I am not sure if a US employer will be able to issue it ( or something similar ) which will be acceptable here in canada ...
also you can register yourself as a business or sole proprieter to claim business expense ( check this with a Tax consultant ) ...
but a tax consultant should be able to guide you better ...
Do not get confused with the forms that are issued by cdn employers. You do not need them at all if you are going to be paid from outside of Canada. They cannot issue any T---- forms. Just keep all copies of your invoices and the bank transcations/pay checks.
As suggested by the "blabber", Getting advice from the tax consultant is the best thing.
