Moving to Canada with LLC and IRA – lots of tax questions Question Hi Mr. Hogan Thank you for taking the time to answer my questions. First let me give you a little background information. I am a dual citizen currently living in the state of Vermont. I plan to move to BC at this…
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….
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…
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…
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…
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…
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….
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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…
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….
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…
How to transfer large US inheritance to Canada? Question Hi Phil, found you on youtube of all places. Sometime next year I’m going to be receiving a fairly large portfolio inheritance from my late mother in the US. Her lawyer and accountant are going to be working through the last of the estate work and…
Receiving and inherited ROTH IRA in Canada Question Hi Phil I live in Ottawa and i just got word that I will be receiving and inherited ROTH IRA from my late Grandmother in the next few months. I actually didn’t know what a ROTH IRA was until I looked it up. It’s not massive, but…
RRSPs and US Expats – Episode #7 On episode #7 of Crossing the 49th we discuss Canadian RRSPs and how they affect US expats living in Canada. What are RRSPs? How do they work? Tax deduction Spousal RRSPs Home buyers plan When they RRIF 71 years old Impact on US Citizens in Canada? US IRA…
Cross-Border Tax and Investment QA – Episode 6 Note: apologies for the audio quality on this one. It will be fixed on the subsequent podcast. On episode #6 of Crossing the 49th Podcast we walk through some common cross-border tax and investment questions that clients have. Question 1: How do I report my US IRA…
5 Options for Canadians with US IRAs- Expat Tax Podcast On episode #5 of the Expat Tax and Financial Planning Podcast we discuss some options for Canadians holding US IRA accounts. Whether you moved up to Canada with a pre-existing IRA or have inherited an IRA from a relative living in the US the following…
Top 10 Expat Tax Questions – Expat Tax Podcast On episode #4 of the Expat Tax and Financial Planning Podcast we discuss some of the most asked questions I get from clients regarding cross-border tax and financial planning issues. The top questions discussed on this podcast include: As a US citizen in Canada do I…
Tax implications of moving investments to Canada – Expat Tax Podcast Note: apologies for the quality of the audio. Half of the podcast was recorded in my car. Subsequent recordings will be much more clear. On episode #3 of the Expat Tax and Financial Planning Podcast we discuss some of the tax issues related to…
IRS Guidance on Second Stimulus Payments The US treasury and the IRS have recently released some guidance on the second stimulus payment. I’ll outline a summary of these updates below: Overview The IRS and the Treasury Department expects the first American taxpayers to receive their payments starting this week. Taxpayers are not required to request…
ROTH IRA and TSFA Questions Question Hello! This is Erin from the recent question about what to do with American investments. A little about me: I make 12k USD per year through remote work for an American company. I make about 30k Canadian self employed income. Is it possible to invest in both TFSA and…
The CRA, Cryptocurrency, and Voluntary Disclosure On September 18, 2020, the CRA applied to Federal Court in an attempt to obtain client’s confidential tax information from Coinsquare Ltd., a Toronto-based cryptocurrency trading platform. Included in the application was a request to view trading and holding information. This filing is one of a series of significant…
Understanding Form T1135 – Expat Tax Podcast On episode #2 of the Expat Tax and Financial Planning Podcast we discuss form T1135 – Foreign income verification filings. For a comprehensive article on form T1135 and the issues related to foreign asset reporting click here. Form T1135 is required to be filed by tax residents of…
Should I move my investments to Canada? Question Hi Phil I’ve just recently joined the Americans in Canada Facebook page and have been following your posts. All good stuff. We moved to Kelowna last year from California and have a few questions related to our investments in the US. I’m a dual citizen and my…
Canadian Tax Implications of Bitcoin and Crypto Assets Question Hi, I normally do my own taxes from a standard job that gives me T4 slips but in 2019 I started investing in cryptocurrencies and I’m not exactly sure how to declare what I’ve done to the CRA. (As of January 1, 2020 I think I…
Democrats Propose Huge COVID-19 “Bazooka” Wow, the Democrats have proposed significant stimulus in their March 18, 2020 memo to the House of Representatives. Some highlights include: $2,000 for each adult and $1,000 for each child per month Suspension of credit payments Credit facility available to help reimburse creditors Suspend all negative credit reporting Prevent debt…
Buying Canadian property as an American There are many reasons to invest in Canadian property as an American. The process, however, is not always straightforward. Here are a few tips to streamline the process and help you make the best decision for your investment. 1. Get your finances in order Before you start shopping for…
Should I convert my IRA to a ROTH IRA before moving to Canada? Question I’ll be moving to Ottawa from Boston late this year and I’ve been working through some financial planning with my broker. While doing some research online I came across your cross border tax articles, specifically the ones outlining IRA conversions. I…
Canadian Non-Resident Tax Guide As a non-resident of Canada you are liable for tax and reporting for income earned from Canadian sources. This guide will walk you through the rules and regulations related to each type of Canadian source non-resident income. Non-Resident Withholding Taxes Non-residents of Canada are subject to withholding taxes on certain types…
Red Pulse ICO – Invested and Moved to Exchange for Sale Question Hi I see you’ve helped others with crypto tax issues, hopefully you can help me with my question. I recently invested in the new Red Pulse token ICO. I invested around $2,000 and I’ll be selling eventually once the tokens are listed on…
Federal and Provincial Governments May Split Marijuana Tax Revenue This week, Prime Minister Justin Trudeau discussed new plans for a potential excise tax on the legal sale of recreational marijuana, the latter of which is set to take effect on July 1st, 2018. “The proposal we put forward is $1 excise tax per gram, up…
Inherited IRA from Father in the US. What are my options? Question Hi Phil I inherited a fair sized IRA (over $600,000) from my US citizen father who resided in the US for over 30 years. My current Canadian broker is suggesting that I collapse the IRA and transfer a portion to my RRSP. The…
Transcript from conversation regarding Cannabis industry trends and tax Recording #1: Information on investing or incorporating on a Cannabis-related company. As most of you know, the federal government plans on legalizing Cannabis in 2018. We don’t have full regulations as of yet and they’ve left it to the provinces to regulate the distribution of Cannabis…
Question Related to non-resident property sale by American Dear Mr. Hogan, I seek your guidance. I am currently on XXXXXXXX and once the international ferry starts up again after 4 November, I could come to your Victoria office. Or perhaps you do consults by phone, email and FAX. I need: 1) a determination of my current…
Starting a Business in Vancouver, Need Some Advice on an Appropriate Structure Question Hi Phil I’m starting an application and gaming company with 2 close friends of mine in Vancouver. We’ve been told on multiple occasions that going into business with friends is a big mistake. But after looks of discussions we’ve all decided to…
Is your corporation at risk of being deemed a personal services business (PSB) by the CRA? If your corporation is deemed to be a personal services business (PSB) your corporation is no longer eligible for the small business deduction (SBD) and its income is taxed at full corporate tax rates. For 2016 the B.C. corporate…