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Snowbirds, proprietors, investors: more tax deadlines you need to know about
12/18/2018 8:31:47 AM
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Tax and investment know-how from a leading Canadian financial education institute.



By Knowledge Bureau  | Tuesday, May 08, 2018


 

TAX PLANNING FROM THE KNOWLEDGE BUREAU



By Evelyn Jacks

It’s the season when many Canadian snowbirds who spend the winter in the United States return to Canadian soil. Timely, as there is also an essential tax deadline for these individuals coming up soon. Learn more about this deadline, and other essential dates snowbirds must address now that the April 30 personal income tax filing deadline has passed.

June 15 is the next key date, as it is the T1 proprietorship filing deadline. Quarterly tax installment payments are also due.

Additionally, the “Closer Connection Exception Statement for Aliens” (IRS Form 8840) must be submitted to the U.S. Internal Revenue Service (IRS) on June 15. This is the important deadline for snowbirds who spend a significant amount of time living in the United States.

Failure to appropriately complete and submit this statement could lead to U.S. tax obligations. To avoid this, snowbirds can answer the questions on the form to prove that they have greater ties to Canada. If approved by the IRS., they maintain their non-resident alien status, and don’t have to submit a U.S. tax return. This status is granted when Canadians effectively prove they stayed in the U.S. for fewer than 183 consecutive days in the tax year, and that they have a tax home in Canada.

From the Knowledge Bureau’s comprehensive tax database, questions asked on this form include:

* Where the individual has his or her permanent home and keeps personal belongings.
* Where the individual’s family lives.
* Where the individual’s current social, political, cultural or religious activities take place.
* Where the individual’s principal income-earning activities take place.
* The jurisdiction in which the individual holds a driver’s license.
* Where the individual is registered to vote.
* Where the individual’s financial accounts are located.
* The country the individual lists as his or her residence when completing official documents.
* The country where the individual is covered by a government health plan.

June 30 is also a notable tax deadline for investors who have Tax-Free Savings Accounts (TFSAs). In 2018 this date falls on a Saturday, so plan accordingly! Be sure to have the following forms submitted on time:

* Form RC243 – TFSA Return
* Form RC243 – Schedule A – Excess TFSA Amounts
* Form RC312E – Reportable Transactions

For more information, consult a professional Knowledge Bureau-trained DFA-Tax Services Specialist .

© 2018 The Knowledge Bureau, Inc. All rights reserved. Reprinted with permission.

Evelyn Jacks is the founder and President of Knowledge Bureau, which brings continuing financial education in the multiple areas of specialization to advisors and their clients. She is the author of 52 books on tax and wealth planning. This article originally appeared in the Knowledge Bureau Report. Follow Evelyn Jacks on Twitter @EvelynJacks. Visit her blog at www.evelynjacks.com.

Evelyn Jacks’ latest book, NEW ESSENTIAL TAX FACTS: How to Make the Right Tax Moves and Be Audit-Proof, Too is available now.

Notes and Disclaimer

The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.

 
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