Canadian TN Visa holder in US, other income

[xbl]

Hello,

This is not my current situation but I would like some help in understanding for possible future reference.

If a Canadian holds a TN visa and works in the US I understand that he cannot be self employed, but another thread pointed that passive income is ok.

Is any passive income in the US ok? For example, buying real estate in the US and renting it out, etc.

What about if the Canadian writes a book, and sells it, either self publish or collect royalty, is that ok?

What a Canadian be able to hold educational seminars related to his field of practice and charge a fee for those seminars? Is this "self employment"?

If self employment is not ok, can another American citizen register a company and then hire the Canadian citizen under a TN Visa?
Similarly, can a Canadian register his own company back in Canada, and operate through that while still working in the US on a TN Visa?

 

[TheRealCanadian]

If a Canadian holds a TN visa and works in the US I understand that he cannot be self employed, but another thread pointed that passive income is ok.

Based on your questions, it appears you're not quite sure what passive income is. (Hint: if you need to do something more than merely cash the checks, it's probably not passive income.)

Is any passive income in the US ok? For example, buying real estate in the US and renting it out, etc.

Sure, provided you're not involved with the maintenance.

What about if the Canadian writes a book, and sells it, either self publish or collect royalty, is that ok?

Unless the book writes itself (or was written outside the US), it's not passive.

What a Canadian be able to hold educational seminars related to his field of practice and charge a fee for those seminars? Is this "self employment"?

Depends. If your involvement in the seminar involves getting money and not actually saying or doing anything, it's passive. Other than that, doesn't it sound like self-employment???

If self employment is not ok, can another American citizen register a company and then hire the Canadian citizen under a TN Visa? Similarly, can a Canadian register his own company back in Canada, and operate through that while still working in the US on a TN Visa?

Provided one gets a TN for each US client.

 

[nelsona]

There are things that Cdns -- living in canada -- can do when they come down to US on a B1 status.

These things are NOT permitted when on TN, since that is your only allowable status.

So, passive investment is abouta ll you have. No seminars, no writing/publishing.

 

[xbl]

What about if a Canadian holds TN and works in the states, but does seminars back in Canada? This way, he is not being self employed in the US?

 

[bigboy00]

This should be ok. It is about where the work is done. To be safer, arrange the payment for your seminars (done in Canada) be deposited in Canada.

What about if a Canadian holds TN and works in the states, but does seminars back in Canada? This way, he is not being self employed in the US?

 

[nelsona]

The manner in which you are paid, even less the bank in which it is deposited, matters not a whit in determining the legality or taxability of any income you make.

It doesn't matter if the payment is made to you in canada, US, or borneo: work in canada is legal for cdns living in US regardless of US immigration status, however income generated anywhere is also taxable in US as well.

 

[xbl]

Thanks you guys for the response.

What if the seminar is online or I write a book/ebook, these things may not be in a physical location...would I just need to show I have a Canadian address and the payments are made to Canada not the states?

 

[TheRealCanadian]

What if the seminar is online or I write a book/ebook, these things may not be in a physical location...would I just need to show I have a Canadian address and the payments are made to Canada not the states?

YOU are always in a physical location, and if that physical location is within the US, it is not allowed.