October 16th, Crypto, 30% IRA withholdings and CRA FTC – Ep.23

23 October 23
Crossing the 49th Podcast

On episode #23 of Crossing the 49th Podcast we discuss October 16th, Crypto, 30% IRA withholdings and CRA FTC.

 

Summary:

In the latest episode of “Crossing the 49th: The Crossborder Tax and Financial Planning Podcast,” host Phil Hogan delves into some frequently asked cross-border tax questions. Here are the highlights:

  1. October 15th Deadline: Phil discusses the implications of missing the October 15th deadline for US tax returns. This year, the deadline has been extended to October 16th due to it falling on a weekend. For those who miss this deadline, there’s an option to request an extension until December 15th by writing to the IRS. However, Phil strongly advises against relying on this unless absolutely necessary.
  2. Crypto Reporting: A common query is whether hard wallet crypto assets need to be reported on the T1135 (foreign disclosure for Canadian purposes) or the FBAR. Phil’s advice is clear: when in doubt, report it. This ensures compliance and avoids potential penalties.
  3. 30% Withholdings from US Brokers: Many Canadians with US IRAs face issues with US brokers withholding 30% of their distributions, instead of the treaty rate of 15%. Phil suggests moving the IRA to a Canadian broker to ensure proper withholding and avoid the hassle of filing non-resident US tax returns to recover the excess withheld amount.
  4. CRA Disallowing Foreign Tax Credits: Phil addresses the challenge many face when the CRA disallows foreign tax credits. He emphasizes the importance of claiming the correct amount (15%) and seeking advice from a cross-border CPA to avoid prolonged disputes with the CRA.

Phil wraps up by thanking his subscribers and teasing upcoming content, including exciting guests for 2023 and 2024. He encourages listeners to reach out with any cross-border tax or financial planning questions.

Note: For those interested in the podcast, subscribing to Phil’s YouTube channel is recommended for the latest updates.

If you need personalized advice or have questions, reach out to Phil directly at phil@philhogan.com.

Stay tuned for more episodes and insights from “Crossing the 49”!

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Disclaimer: The information contained in this Podcast and YouTube video is for information purposes only and should not be construed as tax or financial planning advice. Tax and financial planning rules change from year to year and the information contained within may be outdated. Ensure to engage an experienced and competent tax and financial planner to help you with your tax and financial planning needs.

Phil Hogan, CPA, CA, CPA (Colorado)

Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 250-661-9417. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/

This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.

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