My daughter leaving Canada – tax implications? Question Phil, I saw your website and thought I would run this by you. I actually have a bit of a tax background, but my daughter’s situation is new to me. My daughter lived in Ontario for a few years and became a CA permanent resident. In February…
Giving up green card, investment accounts, W8 and HSA Key Points The individual recently renounced U.S. permanent residency and established Canadian tax residency in 2022. They maintain U.S.-based retirement and savings accounts, with concerns about updating their address and filing a W-8BEN form. They seek advice on managing a Roth IRA, including filing an election…
Moving from California to Victoria – Need help planning! Key Points The couple is preparing to move from California to Victoria, BC, with a focus on financial planning. They need guidance on converting a 401(k) to an IRA and potentially creating a ROTH IRA. Reviewing and simplifying investment accounts before moving is crucial to avoid…
Why it’s a bad idea to transfer your IRA to your RRSP Executive Summary IRAs are tax-advantaged U.S. retirement accounts with different tax implications in Canada. Canadian residents, with or without U.S. citizenship, can own U.S. IRAs, but specialized management is recommended. IRA withdrawals are taxed differently for Canadians based on their U.S. tax status….
Do Canadians Need to File US Estate Tax Returns? Key Points Canadians may need to file a U.S. estate tax return if their worldwide estate exceeds the U.S. filing threshold. The U.S. estate tax applies to non-resident aliens holding U.S.-situs assets, such as real estate or stocks. There are specific exemptions and credits available under…
What you need to know about the new RMD rules Key Points The age for Required Minimum Distributions (RMDs) has been raised to 73, starting in 2023. Failure to take an RMD by the deadline may result in a 25% penalty on the amount not withdrawn. Roth IRAs are exempt from RMDs during the owner’s…
California residents with Canadian RRSP – Need tax help! Key Points California residents with Canadian RRSPs must navigate complex U.S. and state tax rules. The U.S. requires annual reporting of RRSPs on IRS forms to avoid penalties. California does not recognize RRSP tax deferral, leading to potential double taxation. Proper planning is essential to minimize…
Friend fined $10,000 for late T1135 filing Key Points A $10,000 fine was imposed for late filing of the T1135 form, which reports foreign assets. The T1135 form is mandatory for Canadians with foreign property exceeding CAD 100,000. Failure to file the T1135 on time can result in significant penalties, even if no tax is…
Americans in Canada – How to vote abroad Key Points U.S. citizens living in Canada can vote in U.S. elections by absentee ballot. Registering to vote from abroad requires filling out the Federal Post Card Application (FPCA) annually. The FPCA allows Americans abroad to receive their ballot electronically or by mail. Submitting the FPCA early…
Tax on US Pension/retirement funds in Ontario, Canada Key Points U.S. pension and retirement funds are generally taxable in both the U.S. and Canada. The Canada-U.S. tax treaty helps avoid double taxation by allowing tax credits for taxes paid to the other country. It’s important to properly file and report U.S. pension income on Canadian…
Help please. I have inherited a U.S. traditional IRA (I am Canadian, living in Canada) Key Points Inheriting a U.S. Traditional IRA as a Canadian resident involves complex tax considerations in both countries. The Canada-U.S. tax treaty allows for tax deferral but requires careful planning to avoid double taxation. Distributions from an inherited IRA are…
ROTH IRA for Canadians and Newcomers to Canada Key Points Roth IRAs offer tax-free growth and withdrawals in the U.S., but Canadians face unique tax considerations. The Canada-U.S. tax treaty may protect Roth IRA earnings from Canadian taxation if handled properly. Reporting a Roth IRA on Canadian tax returns is essential to avoid penalties and…
Moving to Canada – How to Handle Investments? Key Points Moving to Canada requires careful planning to manage U.S. investment accounts and avoid tax pitfalls. U.S. brokerage accounts may be restricted for Canadian residents, necessitating alternative strategies. Transferring investments to a Canadian institution may trigger capital gains taxes in the U.S. Properly structuring investments can…
Keeping your US address on your investment account after you leave?… My own horror story Key Points Maintaining a U.S. address on investment accounts after moving to Canada can lead to significant legal and tax issues. U.S. investment firms may freeze accounts or close them if they discover the account holder is no longer a…
Health Savings Accounts (HSA) for US Expats in Canada – What you need to know Key Points Health Savings Accounts (HSAs) offer U.S. expats in Canada tax-free growth and withdrawals for qualified medical expenses. Contributions to an HSA are not tax-deductible in Canada, potentially leading to double taxation on income used for contributions. Withdrawals from…
What should I do with my U.S. home when I move to Canada Key Points Keeping a U.S. address on investment accounts after moving to Canada can lead to account freezes and closures. Using a U.S. address may cause compliance issues with Canadian tax laws and complicate tax reporting. Financial institutions may impose penalties or…
How to File US Tax Returns in Canada (Ultimate Guide updated for 2023) Key Points U.S. citizens and green card holders living in Canada must file U.S. tax returns annually, regardless of residency. The Foreign Earned Income Exclusion and Foreign Tax Credit can help avoid double taxation on income earned in Canada. Filing U.S. tax…
IRS Streamline program, TFSA, RESP, NIIT and much more with Rob Brown and Doug Lawson EP. #27 On episode #27 of Crossing the 49th Podcast, we delve into the IRS Streamline Tax Program and Cross-Border Financial Planning with Experts Rob Brown and Doug Lawson. Extended Summary of the Podcast: Join host Newsglobal and guests…
How to Find and Work with a Cross-Border CPA – Ep.25 On episode #25 of Crossing the 49th Podcast, we discuss How to Find and Work with a Cross-Border CPA. Extended Summary of the Podcast: In this insightful episode, host Newsglobal provides valuable tips on finding and working with a cross-border tax accountant. Phil…
When are my cross-border tax returns due? – Ep.24 On episode #23 of Crossing the 49th Podcast we discuss When are my cross-border tax returns due? Extended Summary of the Podcast: In the episode of “Crossing the 49th,” host Newsglobal delves deep into the intricacies of cross-border tax and financial planning, specifically tailored for…
October 16th, Crypto, 30% IRA withholdings and CRA FTC – Ep.23 On episode #23 of Crossing the 49th Podcast we discuss October 16th, Crypto, 30% IRA withholdings and CRA FTC. Summary: In the latest episode of “Crossing the 49th: The Crossborder Tax and Financial Planning Podcast,” host Newsglobal delves into some frequently asked cross-border…
Make sure to plan before moving to Canada – Ep.22 On episode #22 of Crossing the 49th Podcast we discuss why it’s important to make sure to plan before moving to Canada. 🎙️🇨🇦 Hello, dear readers! In the latest episode of “Crossing the 49”, our host Newsglobal delves into the intricacies of tax and…
Moving to Canada from Florida – Should I keep our investments with our US broker? Key Points Moving to Canada from Florida requires careful consideration of whether to keep investments with a U.S. broker. U.S. brokers may face restrictions in managing accounts for Canadian residents, potentially limiting investment options. Keeping investments with a U.S. broker…
How to get an ITIN for a US investment account as a Canadian? Key Points Canadians needing an ITIN for a U.S. investment account must submit IRS Form W-7 with supporting documents. An ITIN is required for Canadians who do not qualify for a Social Security Number but need to file U.S. tax returns. Properly…
Tax withholdings on RRSP withdrawal to Italy Key Points RRSP withdrawals by Canadian residents moving to Italy are subject to a 25% withholding tax by Canada. The Canada-Italy tax treaty may reduce the withholding tax on RRSP withdrawals under certain conditions. Properly reporting RRSP withdrawals on both Canadian and Italian tax returns is essential to…
Moving to BC, what to do with investments and pending retirement? Key Points Moving to British Columbia requires reviewing your investment strategy to align with Canadian tax laws. Transferring U.S.-based investments to Canadian accounts may trigger capital gains taxes and other implications. Retirement planning should consider the differences in tax treatment between the U.S. and…
US Social Security Payments to Canadian Key Points U.S. Social Security payments to Canadian residents are subject to a 25.5% withholding tax by the IRS. The Canada-U.S. tax treaty can reduce the withholding tax on Social Security payments to 15% for Canadian residents. Social Security benefits must be reported on Canadian tax returns and may…
Does the Tax-Free First Home Savings Account (FHSA) work for Americans in Canada? Key Points The Tax-Free First Home Savings Account (FHSA) offers Canadian residents tax-free savings for their first home purchase. U.S. citizens in Canada may face U.S. tax reporting and potential taxation on FHSA contributions and earnings. The FHSA is not recognized under…
Moving to Vancouver from the US, need help with investments and future inheritance Key Points Moving to Vancouver from the U.S. requires careful planning to manage investments and future inheritances under Canadian tax laws. U.S.-based investments may face restrictions in Canada, necessitating a review of your investment strategy. Inherited assets from the U.S. could trigger…
Is the 2024 Biden budget proposal dead on arrival? Key Points The 2024 Biden budget proposal faces significant opposition in Congress, making its passage unlikely. Key elements of the proposal include tax increases on high-income earners and corporations. The budget proposal aims to address the deficit but has been met with strong resistance from Republicans….
Moving to Canada? Make this mistake and you might pay Canadian tax on stock losses Key Points Moving to Canada without proper planning can result in Canadian tax on stock losses due to differences in tax rules. Canada does not recognize stock losses incurred before becoming a resident, leading to potential tax liabilities. Failure to…
House committee releases 845 page report on January 6th attack on the Capital Key Points The House Committee released an 845-page report detailing the events and findings of the January 6th attack on the U.S. Capitol. The report includes evidence of coordinated efforts to overturn the 2020 presidential election results. Key figures involved in the…
Meeting the substantial presence test and form 8840 Key Points The Substantial Presence Test determines if non-U.S. citizens are considered U.S. tax residents based on their physical presence in the U.S. Form 8840, the Closer Connection Exception Statement, allows individuals to claim a closer connection to another country, avoiding U.S. tax residency. Meeting the Substantial…
The Auditor General of Canada has found that $27 billion in suspicious COVID-19 payments have been made. Executive summary: The Auditor General of Canada has found that $27 billion in suspicious COVID-19 payments have been made The government has said that it will work to recover any overpayments The opposition has called for an investigation…
CRA has launched formal consultations to streamline the reporting of payroll Canada Revenue Agency (CRA) has launched formal consultations to streamline the reporting of payroll information for the purpose of supporting businesses and employees. Executive summary: The government of Canada has launched formal consultations to streamline the reporting of payroll information The consultations are aimed…
Canadian families expected to pay more for groceries in 2023 Executive Summary: Canadian families can expect to pay an additional $1,065 for groceries in 2023, according to a new report. The report, which was released by Dalhousie University and the University of Guelph, found that prices for meat, vegetables, and fruits are expected to rise…
Despite actual property values falling BC property assessments up Executive Summary British Columbia property assessments are up from last year Market values have shifted due to the pandemic Assessor is asking people to review their assessments and contact the office with any questions British Columbia property owners are receiving their assessments for 2021 and the…
Canadian debt levels reaches new high Key points: Equifax Canada has released its Q3 debt report, showing that the average Canadian’s non-mortgage debt has reached a new high of $22,837. The report also shows that the number of Canadians with a credit score of 600 or lower has increased by 4.3% since last year. Meanwhile,…
Does the global financial system have an $80 trillion debt problem? Executive summary: The Bank for International Settlements (BIS) has issued an urgent call for central banks to take coordinated action to prevent a potential global currency crisis. According to BIS, the world economy is facing an unprecedented situation due to the Covid-19 pandemic and…
Canadian Job Market Sees Growth in November Key Points The Canadian job market experienced significant growth in November, with an increase in employment across various sectors. Unemployment rates in Canada remained stable, indicating a robust labor market despite economic uncertainties. Job gains were seen in industries such as manufacturing, construction, and professional services. The positive…
Canada National Dental Benefit – Everything you need to know Key Points The Canada National Dental Benefit aims to provide dental care coverage for children under 12 from low- and middle-income families. The program offers up to $650 per child annually, depending on household income and family size. Eligible families can apply for the benefit…
Canadian Immigration Solutions for Americans w/Elizabeth Long – Ep.21 On episode #21 of Crossing the 49th Podcast I am joined by Elizabeth Long from Long Mangalji immigration as she discusses Canadian Immigration Solutions for Americans. Topics discussed include ways to come to Canada to work or study, avenues for obtaining permanent residence, tips…
Calculator for Americans living in Canada selling their home Key Points Americans living in Canada face unique tax implications when selling their primary residence, including potential U.S. capital gains tax. The Canada-U.S. tax treaty offers some relief, but careful planning is necessary to avoid double taxation on the sale. Determining the tax basis of the…
Best cities to retire in Canada Key Points Victoria, BC, is a top retirement destination in Canada, known for its mild climate and vibrant cultural scene. Kelowna, BC, offers retirees a mix of outdoor activities, wineries, and a relaxed lifestyle in the Okanagan Valley. Kingston, ON, is celebrated for its historic charm, affordable housing, and…
Quotes about income tax “The hardest thing in the world to understand is the income tax.” – Albert Einstein “The income tax has made more liars out of the American people than golf has.” – Will Rogers “The only things certain in life are death and taxes.” – Benjamin Franklin “There are two kinds of…
US citizen living in Canada and inheritance? Key Points U.S. citizens living in Canada must navigate complex tax implications when receiving an inheritance from the U.S. Inheritances are generally not taxable in the U.S., but income generated from inherited assets may be subject to U.S. and Canadian taxes. The Canada-U.S. tax treaty can help avoid…
Exclusive Canadian Immigration Webinar featuring Elizabeth Long Hi everyone I’m excited to announce our very first podcast guest. On November 17th I’ll be hosting a webinar with Elizabeth Long of Long Mangalji to discuss various Canadian immigration issues and strategies. Elizabeth has extensive experience in Canadian immigration strategies and I look forward to discussing these…
Catch up on US tax returns in Canada via the IRS streamline program – Episode 20 On episode #20 of Crossing the 49th Podcast we discuss how to get caught up on your tax returns as an US expat living in Canada. Topics discussed include how to assess your eligibility under the streamline program…
Live cross-border tax and investment Q&A – Episode 19 On episode #19 of Crossing the 49th Podcast we walk through some live cross-border tax and investment questions. Topics discussed include: 0:00 Intro 5:24 US pensions and foreign tax credits 9:37 Claiming mortgage interest deduction 15:15 Inherited IRA and RRSP 17:19 US person and TFSAs…
Moving to Canada with ROTH IRA, IRA and US investments at Vanguard Key Points Moving to Canada with a Roth IRA or traditional IRA requires careful planning to avoid potential tax issues in both countries. Canadian residents must report U.S.-based investments, including those at Vanguard, on their Canadian tax returns. The Canada-U.S. tax treaty may…