US Internal Revenue Service (IRS) released statistics on the number of tax returns it received in 2010 from US citizens with foreign trusts. In all of Canada only 324 returns were filed that report ownership in a non-US trust, which likely means hundreds of thousands of US citizens residing in Canada had not filed the appropriate returns. This is important for two reasons:
first, the steep penalties for not filing tax returns and
second, last week the US Government Accountability Office (GAO) issued a report that encouraged IRS to pursue those taxpayers who file late returns using a technique known as “quiet disclosure.” more »
Grammy-winning singer Lauryn Hill has been sentenced to prison for failing to pay past taxes of about a $1 million. These tax debt owed to the IRS from her earnings as a singer between 2005-2007.
This is another show off by the IRS to send a message to the public by prisoning famous celebrities, the pitfalls of failure to pay taxes. Previous high profile celebrity jailed by IRS, was Wesley Snipes. Demand of past due taxes has compelled many celebrities to file for personal bankruptcy.
Hill pleaded guilty last year to three counts of failing to file tax returns between 2005 and 2007. Her tax debt on the earnings between those years was about $1.8 million. Before the sentencing, her attorney had said Hill had paid more than $970,000 to satisfy the state and federal tax liabilities. But she still owes about $1 million to the Federal and State government. more »
This could be scary news for Canada’s hot real estate market and real estate entrepreneurs. Canada Revenue Agency has launched a “Condo Project” to take a closer look at the income reporting of real estate investor in the condominium sector.
Taxation on gain from real estate income in Canada is collected at a preferred rate. That is why any one with savings prefers to invest in real estate. Here is how the income from Real Estate is taxed in Canada.
a). Profit from sale of a Principal residence is a tax free income; subject to you meet the criteria to claim that home as your principal residence.
b). Profit from sale of a Rental Property or Investment Property is treated as Capital gain under the Income Tax Act. As it’s a Capital Gain, taxpayer pays tax on only 50% of the income reported on the sale of an investment property. For Example, when you sold your property, if you had a profit of $100.000, 50% of that profit is taxable. So, if you are at 46% tax bracket, your tax on the profit will be $23,000. more »
Do you know what day is today?
Time is almost running out to file your USA and Canada income tax returns. Check the countdown watch on this page. Have you done your taxes yet? What are you afraid off?
Let us offer you our help and take the stress of crunch time off of you. If you contact us today, we might still be able to file your income tax return on time. And if you are expecting a tax refund, do not procrastinate any more. Tax refund is your money. You should get it now.
You should also file your Tax Return on time to qualify for Provincial and Federal benefits, if you are eligible to receive. Thats a lot of money we are taking about.
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“Together in the Eurogroup we decided to have the owners and creditors take part in the costs of the rescue – in other words those who helped cause the crisis,” German Finance Minister Wolfgang Schaeuble, one of the architects of the euro zone’s response to a debt crisis now in its fourth year, told German mass-selling daily Bild.
“Cyprus’s economy will now go through a long and painful period of adjustment. But then it will pay back the loan when it is on a solid economic foundation.”
European officials have worked hard this week to stress that the island’s bailout was a unique case – after a suggestion by Eurogroup chairman Jeroen Dijsselbloem that the rescue would serve as a model for future crises rattled European financial markets.
Which other Eurozone countries will be rescued under the same model? Malta, Luxemberg, Italy? Are you ready for a raid on your bank account by the government? Canadian Banks are already being labeled as too big to fail. What will happen with coming economic slowdown and “not going to happen in Canada” mortgage default and real estate crisis?