MidwestLandlord
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- Dec 6, 2016
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According to my accountant wife,
The USA will treat it as US income, so you'll have to follow all the rules such as W-2's, FICA, Obamacare if applicable, etc.
Plus there is licensing involved if the business is actually taking place in the US (federal and state level licensing). Also, there are state level tax codes to deal with, including income tax etc.
Also, you might have obligations on the Canadian side of things, such as a T4.
She said be aware the the US IRS fine for not issuing a W-2 is the tax due, PLUS up to 25%, PLUS interest, and that the US and Canada have laws in place that allows the Canadian government to collect this on behalf of the USA.
Long story short: Get a CPA that is experienced in US-Canadian Tax codes and wages.
The USA will treat it as US income, so you'll have to follow all the rules such as W-2's, FICA, Obamacare if applicable, etc.
Plus there is licensing involved if the business is actually taking place in the US (federal and state level licensing). Also, there are state level tax codes to deal with, including income tax etc.
Also, you might have obligations on the Canadian side of things, such as a T4.
She said be aware the the US IRS fine for not issuing a W-2 is the tax due, PLUS up to 25%, PLUS interest, and that the US and Canada have laws in place that allows the Canadian government to collect this on behalf of the USA.
Long story short: Get a CPA that is experienced in US-Canadian Tax codes and wages.