ForumCategory: AccountingIncome in USA
Anonymous asked 5 years ago

Hi!
I have a question. I am a freelancer and I live  in Canada, however most of my clients are from U.S. My clients usually pay me via wire transfer in U.S dollars which I convert to Canadian dollars in the bank when I get the wire. Since my clients can claim the money they pay me as a business expense in U.S, do I have to declare this income for U.S (IRS) or not?
Thank You
 
Paul

1 Answers
Elena Furier Staff answered 5 years ago

If you have no ties with U.S. and you live and operate your business in Canada, you only have to file income tax with the Canadian government. You can have clients all over the world that will pay you in all sorts of different denominations. Cash flows will subsequently be translated to Canadian dollars, and you will report this income when filing your taxes. Depending on the structure of your business, exchange gains/losses will take place. If you need more information, please contact me directly at 416-797-1481