Fort Worth and Canada
Fort Worth's aerospace, rail and logistics industries tie it closely to Canada. Canadian aerospace suppliers work on programmes built here, rail traffic moves between Canada and Texas across the BNSF network, and freight from Canadian and Mexican plants passes through Alliance. Canadian engineers, pilots and managers live in the area on assignment or permanently. BOMCAS concentrates on Canada–U.S. tax: Canadian businesses and people in Fort Worth, and Fort Worth residents with Canadian accounts, pensions or property.
Treaty and residency rules are summarised on our Texas cross-border page; this page applies them to Fort Worth's Canadian links.
Canadian Suppliers
A Canadian company that ships parts to Fort Worth customers, sends technicians to install or support them, or keeps stock in a local warehouse must consider whether it has a permanent establishment under the treaty. Services performed in the U.S. for long enough periods can create one. Even without federal tax, the Texas franchise tax can apply to a company doing business in Texas, and sales tax permits may be needed. We review contracts and staff travel to decide what is required.
Canadians on Assignment
Canadian employees on assignment in Fort Worth may stay Canadian residents and file U.S. nonresident returns, or become U.S. residents if they meet the substantial presence test. The treaty can exempt short assignments under certain conditions, but longer ones usually bring U.S. tax on the U.S. earnings and a foreign tax credit in Canada. Employers may need shadow payroll in Canada and U.S. withholding.
Canadian Accounts and Pensions
Former Canadians living in Fort Worth keep RRSPs and RRIFs, which remain tax deferred for U.S. purposes under the treaty, while TFSA and RESP income is taxable in the U.S. Canadian mutual funds are often PFICs. CPP and OAS paid to U.S. residents are taxed only in the U.S. All Canadian accounts count toward FBAR and Form 8938 reporting.
Canadian Investors in Fort Worth Real Estate
Canadians who buy homes, rentals or warehouse space in Fort Worth should choose an ownership structure that works in both countries, since U.S. LLCs are treated as corporations in Canada. Rental income is reported on a U.S. return, and a sale brings FIRPTA withholding, generally 15 percent of the amount realised, unless a withholding certificate reduces it.
Mexican Trade
Much of the freight through Fort Worth comes from or goes to Mexico. Fort Worth companies with Mexican suppliers, maquiladora arrangements or subsidiaries need U.S. reporting such as Form 5471 and attention to transfer pricing. We prepare the U.S. side and work with Mexican advisers on the rest.
Moving Back to Canada
Canadians who return home after years in Fort Worth need to end U.S. residence cleanly, report the year of departure on a dual-status return if applicable and plan for U.S. retirement accounts they leave behind. Green card holders should consider the expatriation rules before giving up status.
Common Filings
- Form 1040-NR or 1040 with treaty statements.
- Forms 8833 and 8840.
- FBAR, Form 8938 and Form 8621.
- Forms 5471 and 5472.
- FIRPTA refunds.
Fort Worth Cross-Border Tax Questions
Does a Canadian supplier sending technicians to Fort Worth owe U.S. tax?
Possibly. Long enough service periods can create a permanent establishment under the treaty, and Texas franchise tax may apply regardless.
Is my RRSP taxed in the U.S.?
Its growth stays deferred under the treaty. Withdrawals are taxable when taken.
Should a Canadian buy Fort Worth property through an LLC?
Often not, because Canada treats a U.S. LLC as a corporation, which can cause double tax.
What happens to my 401(k) if I move back to Canada?
It can usually stay in place, with withdrawals taxed under the treaty rules. Plan before you leave.
Talk to BOMCAS About Cross-Border Tax in Fort Worth
Canadian-owned businesses file the business return and new residents a personal return. Sales tax, books and payroll continue as for any Fort Worth company. Plan the structure before investing, and use late filing for missed forms. If you operate beyond Fort Worth, our state guides to company returns, household returns, sales and use tax, monthly books, payroll, planning and overdue filings apply too, and the Texas overview gathers them in one place.
Let BOMCAS know about your Fort Worth business or household and we will reply with next steps and the information we need for a quote. Contact us through the contact page or the form below, on 780-667-5250 or at info@bomcas.ca. Every Fort Worth service is listed on the Fort Worth overview. This page is general information, not advice for your circumstances.