US Cross-Border Tax Blog

Published by W.L. Dueck LLP

Welcome to W.L. Dueck & Co. LLP’s US and cross-border tax blog. We are a team of over 20 tax professionals that work exclusively on US and cross-border tax issues. Our clients include Canadian businesses and individuals with investments in the US and US citizens resident in Canada. We provide both tax consulting and tax return preparation services. We work with individual and business clients and their legal, accounting and financial advisors.

Catherine Shen-Weafer

Is the interest expense deductible for US non-resident aliens owning a US real property interest?

Loaning between business entities is a widely-adopted business strategy in the real estate industry. Multiple levels of entities are often chosen in a business structure. U.S. limited liability companies (“LLC”) are commonly used to hold U.S. real property interests. When foreign investors are involved for various reasons (i.e., asset protection), foreign investors use a non-U.S. corporation that is treated as a disregarded entity for U.S. federal income tax purposes to be the sole owner of the U.S. LLC. When the… Read More

WLDTax

Outbound Issues – Ownership of Non-US Corporations Subpart F Income

3 Day Tax Conference November 15 – 17, 2017 – Burbank, CA Join Steven Flynn, a partner with W.L. Dueck & Co. LLP at an upcoming CalCPA Tax Conference in Burbank, Los Angeles on November 15 – 17.  During this Federal, State, Local & International Taxation Conference, Steven will bring expertise on Outbound Issues, Ownership of Non-US Corporations Subpart F Income, including: What is a Controlled Foreign Corporation? When do the Subpart F rules apply? Why is it a problem?… Read More

WLDTax

Tax Planning Using Private Corporations – July 18, 2017 Paper (“Paper”) Request for Comments

October 2, 2017   Department of Finance Canada Via email: [email protected]   RE:     Tax Planning Using Private Corporations – July 18, 2017 Paper (“Paper”)             Request for Comments   Dear Recipients: We have read the Paper, reviewed many articles and discussed with and listened to our clients, colleagues and others in our community.  We have concerns with the proposed changes in their approach, the manner they were delivered and their implementation. Our technical concerns are summarized as follows: Holding… Read More

Steven Flynn

Canadian Tax – Federal Liberal Tax Changes on Private Corporations

Over the last few months, much has been written about the proposed Canadian tax changes to private corporations. I am concerned about the speed at which the Department of Finance is moving to enact these significant and wide reaching tax changes.  The proposals were introduced in the summer, while Parliament was not in session, and sought out feedback during a short 75 day window while many Canadians were on holidays and other hard working farmers were busy harvesting.  My concern… Read More

Steven Flynn

IRS Actions to Solve Non-Compliance of Canadians Earning US Rental Income

In August, the US Treasury Inspector General for Tax Administration (TIGTA) issued a final report #2017-30-048 entitled “Additional Controls Are Needed to Help Ensure That Non-resident Alien Individual Property Owners Comply with Tax Laws”[1].  While the TIGTA needs to work on their titles[2], the report contains some interesting recommendations for Canadians that own US real property. TIGTA estimates that non-resident alien investors’ investment in US real property increased by approximately 1/3 or almost US$10 billion between 2013 and 2016.  They… Read More