In this episode, Glen interviews Taha Khan, a Canadian CPA with a U.S. license, who specializes in helping Canadians navigate the complex world of cross-border taxation.

The conversation is centered around real estate investors, snowbirds, and business owners who spend time or have assets in the United States.

Key Topics Covered:

Substantial Presence Test (SPT):

Taha breaks down how Canadians can accidentally become U.S. tax residents by spending too much time in the U.S.

He explains the formula behind the SPT and how the 183-day rule works.

Solutions like the Closer Connection Exception and Form 8840 are discussed to help avoid being taxed as a U.S. resident.

Green Cards & Tax Residency:

Taha explains how having a U.S. green card automatically triggers U.S. tax residency, regardless of physical presence.

FIRPTA & Selling U.S. Real Estate:

For Canadian investors selling U.S. property, FIRPTA (Foreign Investment in Real Property Tax Act) can withhold 15% of the gross sale price.

Taha explains how to reduce this withholding with Form 8288-B and how to structure deals smartly to avoid surprises.

LLCs vs LPs:

Taha gives advice on why LLCs are usually not ideal for Canadian investors due to unfavorable tax treatment by CRA.

He suggests alternatives like Limited Partnerships (LPs) for better tax efficiency.

Canadian Snowbirds:

For retirees or snowbirds spending winters in the U.S., Taha emphasizes the importance of tracking days, filing Form 8840 annually, and consulting a tax professional to avoid dual taxation.

Tips & Takeaways:

Always work with a cross-border tax specialist.

Don’t assume Canadian and U.S. tax rules are aligned.

File the right forms on time—even if you don’t owe tax—to avoid penalties.

Proper planning beats reacting when it comes to cross-border issues.