What you need to know about the new Canada Housing Benefit program Key Points The Canada Housing Benefit Program provides direct financial assistance to low-income renters across Canada. Eligibility for the benefit is based on income and rent levels, with funds aimed at reducing housing costs for vulnerable populations. The benefit is administered through provincial…
Do I need to file in the US for a Canadian business? Key Points U.S. citizens or residents with a Canadian business may need to file U.S. tax returns, even if the business is based in Canada. Reporting requirements include filing forms like the FBAR and Form 5471 for foreign corporations owned by U.S. persons….
Canadian tax on US principal residence sale? Key Points Canadians selling a U.S. principal residence may be subject to Canadian tax on the capital gain. The U.S. may also tax the sale, but the Canada-U.S. tax treaty can help avoid double taxation. The principal residence exemption in Canada can reduce or eliminate Canadian tax on…
American Expat Small-Business Owner Living in Canada – 5471 issues Key Points American expat small business owners in Canada may need to file Form 5471 to report their foreign corporation to the IRS. Failure to file Form 5471 can result in significant penalties, even if no tax is owed. Proper classification of the Canadian corporation…
Gifting Canadian RRSP to Children Key Points Gifting a Canadian RRSP to your children is not allowed, as RRSPs cannot be transferred during your lifetime without triggering taxes. Withdrawals from an RRSP are fully taxable as income, making direct gifts of RRSP funds costly for the giver. Upon the holder’s death, RRSPs can be transferred…
Stats for American living and travelling to Canada Key Points Over 1 million Americans live in Canada, attracted by opportunities, healthcare, and proximity to the U.S. Approximately 15 million Americans visit Canada each year, making it one of the top travel destinations for U.S. citizens. Canada offers various visa options for Americans, including work permits,…
Help with cross-border investment questions Key Points Cross-border investments between the U.S. and Canada involve complex tax and regulatory considerations that require careful planning. Americans living in Canada need to navigate both U.S. and Canadian tax laws, which can impact investment strategies and returns. Common cross-border investment issues include reporting requirements, tax treaties, and the…
Receiving a large inheritance – IRA and investments Key Points Receiving a large inheritance, including IRAs and investments, involves complex tax implications in both the U.S. and Canada. Inherited IRAs have specific rules for distributions, which may trigger taxes in both countries if not handled correctly. Properly managing the timing and method of withdrawing from…
Cross-Border Tax and Investment Q&A – Episode 18 On episode #18 of Crossing the 49th Podcast we hosted a live Cross-Border Tax and Investment Q&A. On another instalment of cross-border Q&A we discuss various cross-border tax and investment related issues. 0:00 We’re live! 2:05 I inherited a bunch of stocks from my father last year…
Moving to Canada from Texas with ROTH IRA, Investments and Living Trust Key Points Moving to Canada from Texas with a Roth IRA requires careful planning to avoid Canadian tax on future distributions. Roth IRA investments may continue to grow tax-free in Canada, but proper reporting to the CRA is essential. A U.S. living trust…
US streamline tax return catch up and inherited IRA Key Points The U.S. Streamlined Filing Compliance Procedures allow Americans abroad to catch up on missed tax returns without severe penalties. Inherited IRAs require careful handling to ensure compliance with both U.S. and Canadian tax laws. Timely and accurate reporting of inherited IRAs can prevent unexpected…
Sale of Thailand property by Canadian Key Points The sale of property in Thailand by a Canadian resident is subject to both Thai and Canadian tax laws. Capital gains from the sale may be taxable in Canada, even if taxes were paid in Thailand. The Canada-Thailand tax treaty can help prevent double taxation, but proper…
What tax filings should you expect your first year in Canada? Key Points Your first year in Canada involves filing both Canadian and possibly U.S. tax returns if you’re a U.S. citizen or resident. Canadian tax filings will include reporting worldwide income, with credits available for taxes paid to other countries. New residents must file…
Should I sell all my investments before moving to Canada? Key Points Selling all investments before moving to Canada may trigger capital gains taxes in your current country of residence. Canada imposes tax on worldwide income, including gains on investments sold after becoming a resident. Maintaining certain investments might be beneficial, but they must be…
Question about Capital Gains taxes by IRS on Canadian property Key Points U.S. citizens are subject to IRS capital gains tax on the sale of Canadian property, even if it’s their principal residence. The Canada-U.S. tax treaty may provide relief to avoid double taxation, but proper filing is crucial. Capital gains on Canadian property must…
What should we do with our IRA and RRSP when we move to Canada? Key Points Managing IRAs and RRSPs after moving to Canada requires careful consideration of cross-border tax implications. IRAs can continue to grow tax-deferred, but withdrawals may be taxed in both the U.S. and Canada. RRSPs are recognized by the U.S. for…
Moving to Canada with Trusts, IRAs and Real estate issues Key Points Moving to Canada with trusts, IRAs, and real estate involves complex tax considerations in both the U.S. and Canada. Trusts may be subject to different tax treatments in Canada, potentially leading to unexpected tax liabilities. IRAs can continue to grow tax-deferred, but distributions…
Moved up to Canada with 401k, investments and LLC business assets Key Points Moving to Canada with 401(k) investments and LLC business assets requires careful cross-border tax planning. 401(k) plans can continue to grow tax-deferred, but withdrawals will be taxed in both the U.S. and Canada. LLC business assets may be treated differently under Canadian…
Principal residence, losses, inherited IRA, FBARs and more – Episode 17 On episode #17 of Crossing the 49th Podcast we discuss Principal residence, losses, inherited IRA, FBARs and more. On another instalment of cross-border Q&A we discuss various cross-border tax and investment related issues. I’m moving to Canada, should I sell my PR or rent…
How to correct under and over withholdings on US pensions – Episode 16 On episode #16 of Crossing the 49th Podcast we discuss how to correct under and over withholdings on US pensions. When you receive pension income from the US as a Canadian tax resident the custodian of the plan is required to withholding…
How to correct under or over withholdings on US IRA or pension payments Whether you’re a US citizen or a non-resident Alien US custodians are required to withhold US tax on payments of IRA and other related pensions to Canadian residents. Under the Canada-US income tax treaty non-residents of the US are liable for a…
Business Structures for Americans in Canada – Episode 15 On episode #15 of Crossing the 49th Podcast we discuss some business structures available for Americans living in Canada. We speak a lot to new and established Americans living in Canada that need to assess which business structure is right for them. Some business structures available…
My advisors is telling me to withdraw my IRA? Question Hi Phil, I’m a member of the Facebook page. Maybe you can help me with some planning I’m trying to do for the coming year. I moved to Canada last year and my plan is to remain in Canada permanently. The only thing left in…
California and Canadian tax residency issues Question Phil, Saw your website and thought I would run this by you. I actually have a bit of a tax background but my son’s situation is new to me. My son lived in Ontario for a few years and became a CA permanent resident. During February 2021, he…
Moving from Thailand to BC Question Hi Phil, My name is XXXXX. Thank you for your emails. I was born in Vancouver, BC in 1955 to UK parents who moved to Washington DC in 1967 to work. After high school and a BA degree on the East coast, I completed 2 masters degrees at the…
Moving out of Canada – Tax issues Question Hello Phil Thanks for your quick reply. Just to clarify, my intention is to fully retire by 2023 (as in nothing but pension income) and live in the home that my husband and I purchased in Washington IF everything goes according to plan and I am awarded…
Americans Selling their Principal Residence in Canada – Episode 14 On episode #14 of Crossing the 49th Podcast we discuss the tax implications of Americans living in Canada selling their main home. Given significance of home price increases over the last few years we often help US clients plan for the sale of their main…
FAQ: foreign tax credits, incorporation and Bitcoin – Episode 13 On episode #13 of Crossing the 49th Podcast we walk through more cross-border frequently asked questions. I made a mistake on my cross-border returns, what should I do? Should I keep my US inheritance in the US? I’m getting audited by the CRA for…
Cross-Border FAQ: CRA reviews, W8, Inheritances, IRA or RRSP? – Episode 12 On episode #12 of Crossing the 49th Podcast we walk through some frequently asked questions regarding cross-border tax and financial planning. I speak to lots of cross-border clients each week and I’ve compiled a list of some of the most asked questions I…
Canadians with US Pensions – Episode 11 On episode #11 of Crossing the 49th Podcast we discuss how US pensions are taxed in Canada. Many of my client receive pension income from the US whether it be traditional government or private US pensions or registered pension payments from 401k or IRA accounts. In this podcast…
Canadian inherited a US trust containing investments Question Hi Phil I’m planning to book a consultation with you shortly for my questions below: I inherited a trust last year that I need help with. I think I received bad advice early last year and need to get proper advice on the trust given how many…
IRA or RRIF Withdrawals? Question If I’m thinking of taking distributions from my IRA or RRIF in excess of my required minimum distributions which should I pull from first? My RRIF or IRA? Answer I get this question a lot, and of course, like all things tax and investment related the answer to the question…
5 important changes to make to your US investments before moving to Canada As we all know, tax rules between Canada and the US ca be quite different. Not properly assessing your US investments before moving to Canada can result in often terrible tax inefficiencies. Outlined below are 5 important investment changes that should be…
How are US pensions taxed in Canada Question I moved back to Canada a few years ago and will be starting to draw on my US pension in the coming months. How will my US pension be taxed in Canada? Answer Hi, thanks for your question, however considering I don’t know much about your situation…
CRA Foreign tax credit review and US capital gains distribution Question Hi Phil I follow you on social media and one day would love to be one of your clients once I can afford the extra tax accounting costs. In the meantime I wonder if you can help me with a tax problem I’m having….
American in Canada Selling Their Home As Canadian housing prices have risen significantly over the last few years the tax consequences of selling your primary home for both Canadian and US purpose can be significant. We will discuss below the main cross-border tax consequences of selling your principal residence and how to potential reduce any…
Moving to Canada with investments in a revocable trust… Question I’ll be moving up to Canada next year and I’ll need help navigating some planning. I have a fair amount of investments in my revocable trust and need someone to review the holding to ensure I don’t run into trouble when I become a Canadian…
US tax withholdings on pension death benefit Question Hi Phil, This is XXXXX XXXXX from the Americans Living in Canada FB page. I’m sure you’re busy this time of year, but I’m hoping you might be able to answer a question for me. I live in BC, and my dad passed away last July in…
Quebec just announced a $500 “counter inflation” payment, will other Governments follow suit? Today the government of Quebec announced a one-time “counter-inflation” payment to Quebec residents that earn less than $100,000 in an effort to help Quebecers navigate an increasingly high inflationary environment. $3.2 billion will be spent on the one-time $500 payments to Quebec…
Cross-Border Tax QA – FBARs, 1116, IRA Transfers and Other As you can imagine I receive a significant amount of cross-border tax questions each and every week. Given some of these questions are quite frequent I thought it might be helpful to post some answers to some of the most frequently asked cross-border tax questions…
Buying Property in Canada – Is it possible, and if so, where to begin? Whether you are looking to buy a vacation residence, an investment property, or move to Canada more permanently, there are many factors to consider when looking to purchase real estate in Canada. I will run through the most important criteria below….
Expat and Cross-Border Tax Deadlines – Episode 10 On episode #10 of Crossing the 49th Podcast we discuss important cross-border and expat tax filing deadlines. Given the potential for large penalty assessment on late tax filings it’s extremely important to not only understand all the US and Canadian tax filing deadlines, but also to ensure…
Common Expat Tax Return Mistakes – Episode 9 On episode #9 of Crossing the 49th Podcast we discuss the most common mistakes I see others making on their cross-border Canadian and US income tax returns. I’ve reviewed a lot of US tax returns from new clients. Given the inherit complexity of cross-border tax returns…
Does my Canadian Corporation Need to File US Returns? Question Hi Phil I have some questions about my Canadian company that I need answers to. I run an crypto consulting company from Vancouver but lots of my clients are in the US. I would say that around 70% of my revenue actually comes from the…
Cross Border Tax Deadline Dates Outlined below are a list of tax deadlines for American’s living in Canada as well as regular Canadian taxpayers and non-residents of Canada. Note that in years where the deadline falls on a holiday it is often moved to the next business day. Deadlines may also be adjusted by Governments…
Need help with estate planning in Victoria Question Hi Phil I got your contact info from my long-term lawyer XXXX XXXXX. He will be helping with my estate matters but I also have a bunch of US based issues, estate planning and investments that I need help with. Not to mention a rather large US…
How to plan for investments before moving back to Canada Question Hi Phil My husband and I are part of your Facebook group for Americans in Canada. We have been following the group for some time and are planning our move back to Canada in the coming year. We both moved down to California 20…
Biggest mistake when moving to Canada? I posted a question to our private expat Facebook group a few weeks ago and I thought some of the responses would be helpful to those thinking about moving or retiring to Canada. If you haven’t yet signed up for our exclusive expat Facebook group please do so here:…
Mistakes I often see on Cross-Border US and Canadian tax returns I’ve reviewed many US tax returns from new clients. Given the inherent complexity of cross-border tax returns, I tend to see lots of incorrect filings and omissions. This post is not meant to point out others’ mistakes but rather to inform those with cross-border…
Tax Treaty Articles every US Expat should know – Pensions The Canada-US tax treaty can be quite complex and difficult to understand if you don’t have a lot of experience in interpreting the treaty and applying treaty rules through income tax return elections and forms. In very general terms the tax treaty was negotiated between…