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Tell the Canadian government that you're a tourist, which you essentially are. It isn't at all difficult to get an extension to your visitor's visa. If you're required to pay taxes on what you win at poker games then pay 'em to the IRS. I'm sure that most poker players don't think of their winnings as income....
If you're earning your funds solely from the Net then you aren't technically working in Canada.
If you don't have a registered business anywhere and are only an individual, there's no need to report your earnings as anything other than personal income, if, indeed, income from playing poker is taxable. (Is it? I wouldn't know.)
DH and I own and run a Canadian business or two, but if we happen to be in the States (or anywhere else) when people order from our online store, we pay no attention to where we are and pay only Canadian income tax.
Hope this helps,
Mahrie.
As he would be physically present in Canada over 183 days, all his income, including earned from the Net, as you say, would be Canada-source income and he would be considered working in Canada.
Therefore, he would be required to file a Canadian tax return and pay income tax in Canada.
In addition to filing in Canada, as a US citizen, he will also have to file and report the income to the IRS, although, there probably would be no tax due to the US, although as a self-employed he may have to pay social security taxes in the US in addition to the income tax paid in Canada.
Your situation with your Canadian business is very different, as you are probably physically present in the US for only a short period of time in any calendar year, so you never become a US resident for tax purposes.
Last edited by movingwiththewind; 07-20-2015 at 10:41 AM..
As he would be physically present in Canada over 183 days, all his income, including earned from the Net, as you say, would be Canada-source income and he would be considered working in Canada.
Therefore, he would be required to file a Canadian tax return and pay income tax in Canada.
In addition to filing in Canada, as a US citizen, he will also have to file and report the income to the IRS, although, there probably would be no tax due to the US, although as a self-employed he may have to pay social security taxes in the US in addition to the income tax paid in Canada.
Your situation with your Canadian business is very different, as you are probably physically present in the US for only a short period of time in any calendar year, so you never become a US resident for tax purposes.
Except, although not applicable to our O/P; if you spend more than 163 days in the U.S. over a three year period calculated with numbers of days in current year, plus 1/3 of days of year previous, plus 1/6 of days year before that. Should those days total 163 you are deemed by IRS as being obligated to pay taxes to the U.S. on ALL sources of income regardless of where it comes from OR if you've already paid taxes in Canada.
Your obligation if visiting the U.S. and fitting that numerical equation, is to file a form 8840 proving a "closer connection" to your country of citizenship through proof of taxes paid on all income earned to that country. That form also requires you to furnish ALL banking information, ownership of properties, utilities paid, property tax records, vehicle ownerships, liability insurance premiums paid, etc., etc., to prove your "closer connection".
You can see where this is an obvious trap of sorts with visiting Canadians being allowed an "assumed" visitor visa of 180 days-per-year of stay in the U.S.
Practical application of this IRS stipulation means should you only be a retiree visitor, not working or garnering any income in the U.S. but rather spending money, and use your full 180 day allotment over a couple of consecutive years, you could be dinged to pay income taxes to the U.S. on whatever retirement income you're receiving from Canadian sources ON TOP of taxes you've already paid in Canada unless you've previously filed that form 8840.
Canadian government will cooperate in collection of those taxes should you befall this pothole in the road of life.
Single male coming into Canada with vague plans of how long you are going to stay or where you will stay will arouse the border guards suspicion that you are coming to Canada to stay and work,You really dont want them to get this idea. with the prospect of a lengthy stay one of their main questions will be how you intend to support yourself if you cant prove this to their satisfaction you may be denied entry.
Be aware that much of a CBSA agents conclusions are subjective in nature in other words its his call on each situation.
That's my main concern. My plan is to pack light and say I'm meeting a friend and driving back to the states together, thus no return ticket.
Another issue is I'll be coming with cash. I have a friend in the states who has CAD and will exchange for USD. It's a win-win as we both avoid fees. Will it raise eyebrows if I show up and declare 10K+ in cash?
I think $10 K is the maximum amount of cash you are allowed to carry across the border although carrying that amount of cash will raise their suspicions as to why you need that much cash if your plan is to "pack light and say I'm meeting a friend and driving back to the states together",
Remember these CBSA agents are masters at spotting deception so whatever plan you come up with keep it as close to factual as possible.
Is saying I plan to stay a few months a terrible idea? That makes having a large some of cash more plausible
Having a large amount of cash nowadays is unusual enough that I would definitely expect you to have trouble at the border. If you try it, I would take under ten, maybe five. And I would still not be surprised if you're turned back. Nothing about this would smell legitimate to a border guard. People withdraw from ATMs. Almost no one carries cash.
I think your best bet is to come as a tourist with the idea of going to see friends for 2 weeks, once in Canada theres the possibility of your plans to return to the USA changing
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