QUESTION:
I'm a Canadian living in Vancouver. I've been thinking about renting
storage in Washington to store items I buy in the US in anticipation of
selling them on eBay to US buyers. (I'm a one-person small operation.) My
reason for doing this is to avoid duty, taxes, and customs brokers' fees to
bring products into Canada that would only be shipped back to the US.
All sales, eBay listings, payments, would be processed via my computer in
Vancouver. I would go to Blaine a couple of times per week to pack and ship
orders.
My questions:
1) are there immigration issues involved even if I never stay overnight in
the US?
2) to which country would I pay income?
Thanks for your help.
=========================
david ingram replies:
I am just in the position of going over more than 1,000 messages that I have
received and not even read. (at the same time, I answered over 1,000).
I was about to dismiss this but the ebay caption caught my attention.
1. You can NOT pack and mail your shipments in the US. You might get away
with it for a while but you would be working in the USA and you do not have
a visa to work in the US.
2. In the case described, you would pay income tax first to the US by filing
US 1040 and schedule C and claiming exemption from FICA because of your
Canadian residency. Then you would report the income again in Canada on
Schedule 2124 of your Canadian T1. You would claim a foreign tax credit on
Canadian schedule 1 - lines 431 and 433.
Hope this helps. By the way, I have bought over 300 items on ebay and had
them all shipped to a Blaine Warehouse.
ask international income tax expert and immigration expert david ingram in
North Vancouver Canada with David Holroyd, George Arora CPA, and Gary Gauvin
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