Expatriate Tax Advice, Planning & Preparation for American & Canadian Expatriates
Canadians

The Canadian tax system is unique as compared to other industrialized countries.  It is therefore important to get the proper advice before undertaking any financial endeavor.

Expatriates Leaving Canada
Expatriates Working in Canada / Returning to Canada
Snowbirds

Expatriates Leaving Canada

Canadians are quickly gaining expertise that is marketable worldwide.   With Canadians moving around the world to satisfy this need, it is important that their tax situation be properly handled. 

Common concerns for Canadian expatriates working abroad are:

  • Residency concerns 
    • Am I a resident of Canada?
    • What planning is needed to become a non-resident of Canada?
    • Do I want to keep Canadian residency?
    • What tax rate will I continue to pay?
    • Will I be caught?
    • Am I double taxed?
    • What tax returns do I need to file? Federal or state?
    • I thought Canadian tax rates were higher than the US?

  • Employment income 
      • Do I need to stay on Canadian payroll?
      • How is my employment income taxed now that I work overseas?
      • Can I stay on Canada Pension Plan (CPP)?
      • What is the Overseas Employment Tax Credit?  Do I qualify?
      • I thought the Overseas Employment Tax Credit (OETC) gave me
    ....$80,000 Cdn tax-free?
      • What if I am paid in US dollars?
      • Can my employer deposit my cheque in a Canadian bank account
    .....while I am outside Canada?

  • Investing 
    • Is departure tax a concern for me?  What is it? 
    • Can I keep my Canadian bank accounts?
    • What income tax returns do I need to file.
    • What do I tell my banks? Investment advisors?
    • Are there investment restrictions as a result of my move?
    • Can I invest in Registered Retirement Savings Plan (RRSPs) and ..Registered Education Savings Plan (RESPs)?
    • Will RRSP income be taxed in the foreign country?
    • Do I need to sell all my investments?
    • What do I do with my RRSPs and pensions?
    • What impact will currency changes have on me?
    What is US estate tax?
    What is a single purpose corporation?
    Is my will still valid?
    What do I do if I am an executor of an estate?
  • Renting 
    Can I rent my Canadian home while overseas?
    How much tax do I owe?
    What do I need to do to lower my Canadian taxes?


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Expatriates Working (Returning) in (to) Canada

More and more individuals and corporations are looking at Canada as a place to work and do business.  With it comes the uncertainty of Canadian taxation.  There are a number of issues that need to be addressed even when spending one day working in Canada.  Some of these concerns are:

  • Residency concerns
    Will I be a resident of Canada?
    Can I avoid paying Canadian tax?
    Is there a treaty with my home country?  Will I continue to be
    ...resident there?
    Will I be caught?
    I don’t want to pay any Canadian tax.  How can I avoid it?
    I’m returning to Canada.  What planning is available?
    I thought Canadian tax rates were higher than the US?

  • Employment income
    Do I have to go on Canadian payroll?
    How is my employment income taxed now that I working in Canada?
    Do I have to pay into the Canada Pension Plan?  What are the
    ...benefits?
    What withholding applies to payments made to non-residents for
    ...services rendered in Canada?

  • Investing 
      • What happens to my foreign investments?
      • What income is taxable in Canada?
      • Is departure tax a concern for me when I leave Canada? 
    .....What is it?
      • Can I keep my foreign bank accounts?
      • Are there investment restrictions as a result of my move?
      • Can I transfer my IRA/ 401(k) to an RRSP?


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Snowbirds

As Canadians continue to flock to the US to get away from the cold, more and more individuals are being exposed to potential US taxation.  Managing your US taxation can be complicated but with a proper understanding of US law and the tax treaty between Canada and the US, your US tax concerns can be lessened. 

Common concerns for Canadian snowbirds in the US are:

  • Residency concerns  
    Will I become a US resident?
    What planning is needed to become a non-resident of Canada?
    Do I want to keep Canadian residency?
    What forms do I need to file?
    Do I need to be in the US for less than 183 days for tax
      purposes or health coverage purposes?
  • Renting your property
    What do I need to file if I rent my US home?
    What if I sell my US home?
    What is the most tax advantageous way to own my US home?
    Are there estate tax concerns?
    Should I take a mortgage on my US property?
    What is a single purpose corporation?

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