Status Updates From Lady Liberty

Collins Barrow Clarity Defined" www.collinsbarrow.com STATUS UPDATE FROM LADY LIBERTY U.S. TAX IN 2014 Recent changes mean manytaxpayers will face increased scrutiny from the Internal Revenue Service (IRS). These changes will affect Canadians who own U.S. property, Canadian investors, U.S. investors and U.S. citizens. U.S. TAX MATTERS • CANADIANS HOLDING U.S. PROPERTY EXPOSURE TO U.S. ESTATE TAX Depending on the value of the estate, the IRS may levy U.S. estate tax on the following types of Canadian-owned property. Shares in U.S. corporations, even if held in a Canadian brokerage U.S. real estate, Interests in U.S. including vacation partnerships homes account CANADIAN INVESTORS UNCLE SAM HAS HIS EYE ON YOUR NEST EGG! Do you hold savings in a U.S. based 401(k) or individual retirement account (IRA)? If so, these may be subject to U.S. taxes. Consider transferring these funds on a tax-deferred basis to a Canadian RRSP. •U.S. TAX REFORMS........ U.S. INVESTORS FOREIGN REPORTING OBLIGATIONS INTENSIFY Are you a U.S. investor with foreign financial assets? Reporting guidelines for the IRS have grown much more stringent. U.S. investors who fail to report their investments in passive foreign investment companies (PFICS) and other foreign entities risk significant penalties. U.S. CITIZENS NEW LIMITS ON FOREIGN TAX CREDITS Do you currently pay taxes in the U.S.? Recent updates to U.S. tax law restrict a U.S. taxpayer's ability to claim foreign tax credits in certain situations and may affect your current U.S. tax strategy. FOREIGN ACCOUNT TAX COMPLIANCE ACT THE IRS SEEKS A STATEMENT OF ACCOUNTS Do you have U.S. citizenship? Even if you have lived in Canada all your life, you still need to satisfy U.S. income tax return and reporting requirements. Effective July 2014, the Foreign Account Tax Compliance Act (FATCA) forces Canadian financial institutions to provide information on U.S. account holders to the IRS. The result may lead to significant penalties for failing to file U.S. tax returns in previous years. The programs to catch up on past filings likely won't be available for long! NEED HELP BUILDING A NEW U.S. TAX STRATEGY FOR 2014? If any of the above situations pertain to you, contact the U.S. tax experts at Collins Barrow for actionable advice and personalized solutions. While this infographic provides general planning parameters, Collins Barrow recommends that you seek professional advice before taking specific tax planning steps. Visit collinsbarrow.com for further information.