Hi Guys hope you can help me out with this question,
We are a Canadian freight broker (partnership) and I have a question about Canadian and US Tax implications on our income and hope to get some insight from the senior brokers -
1) how do you report your income tax (and stay within the rules of law) on your brokerage income when you have income from both the US and Canada in order to not get "double taxed" from both the US and Canada?
2)For the CRA - For example - if we have a load that is invoiced at $1,000+13% HST = $1,130.00. HST goes to gov't, lets say $800 to carrier which leaves $200 in profit. When we do our taxes are we reporting the gross amount ($1130 minus the payouts/expenses) or just the profit amount ($200 minus expenses incurred)?
If you can give me some insight on how you guys are working this out that would be appreciated. I wanted to get some industry expert input from you before I speak with an accountant. I find that not all accountants are familiar with laws on both sides of the border and with freight brokerages. If you have any suggestions on good accountants in the Ontario side let me know.
Thanks,
We are a Canadian freight broker (partnership) and I have a question about Canadian and US Tax implications on our income and hope to get some insight from the senior brokers -
1) how do you report your income tax (and stay within the rules of law) on your brokerage income when you have income from both the US and Canada in order to not get "double taxed" from both the US and Canada?
2)For the CRA - For example - if we have a load that is invoiced at $1,000+13% HST = $1,130.00. HST goes to gov't, lets say $800 to carrier which leaves $200 in profit. When we do our taxes are we reporting the gross amount ($1130 minus the payouts/expenses) or just the profit amount ($200 minus expenses incurred)?
If you can give me some insight on how you guys are working this out that would be appreciated. I wanted to get some industry expert input from you before I speak with an accountant. I find that not all accountants are familiar with laws on both sides of the border and with freight brokerages. If you have any suggestions on good accountants in the Ontario side let me know.
Thanks,