Litwin CPA Inc., a full-service public accounting firm serving a wide range of private businesses, not-for-profits, estates and trusts and personal income tax filing and Robert Allnutt B. Comm., the owner of a tax accounting firm specializing in American and Canadian personal tax filings and film industry accounting services announce the combining of their practice which will continue under the name Litwin CPA Inc. The addition of the Allnutt team adds to our ability to serve our … Read more

Prepared by Michael Litwin, CPA, CA, TEP AS OF OCTOBER 2019 It may not come as a surprise, that both Canada and the IRS imposes taxation on cryptocurrency transactions.  The IRS issued guidelines on this subject in 2014 and information can be found by following this link: https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions In 2014, the IRS issued Notices 2014-21, 2014-16.1.R.B.938, explaining that virtual currency is treated as property for Federal income tax purposes and providing examples of how longstanding tax … Read more

This article intends to provide a small insight into the world of Cryptocurrency and taxation in Canada. Characterization Of Cryptocurrency The CRA characterizes cryptocurrency as a commodity. The use of cryptocurrency to exchange goods or services results in the acquisition or disposition of property or in an income or expense. The receipt of cryptocurrency in payment for goods or services constitutes income and attracts sales and income taxes based on the fair value of the exchange. … Read more

Fraudulent communications from the Canada Revenue Agency (CRA) have been recently sent to taxpayers through telephone, email, or text message. It is important to be cautious and not disclose any information when receiving a message from the “CRA” through these methods of communication. These scams often insist that personal information is needed in order for taxpayers to receive a refund or a benefit payment or they urge taxpayers to visit a fake CRA website which … Read more

Your Children Live In The United States and you want to make a gift or leave an inheritance upon death The IRS Has Rules for Reporting Large Foreign Gifts and Inheritances Internal Revenue Code 6039F, Notice 97-34 and IRS Form 3520 The Internal Revenue Code requires that U.S. persons (including immigrants, legal and illegal, living in the United States) must report certain large foreign gifts. If a U.S. Taxpayer receives annual aggregate gifts above $15,797 … Read more

The program was initiated in 2009 and allows U.S. taxpayers who previously did not report the offshore income and assets to voluntarily resolve the past non-compliance in exchange for a protection from criminal liability and a limit on civil penalty exposure. According to the IRS, “while the program has been successful in the past, there has been a significant decline in the number of taxpayers participating as well as an increase in awareness of offshore … Read more

Federal government eliminated the Children’s Fitness and Arts Tax Credits for 2017 and future tax years.For Quebec:You can claim a refundable tax credit for the physical activities or artistic, cultural or recreational activities of an eligible child, if: Eligible child: who was born after December 31, 2000, but before January 1, 2012 → 6 to 18 y.o. Tax credit is 20% of amount paid.Maximum allowable is $500 * 20% = $100 per child. Here is a … Read more