Canada-U.S. Cross-Border Financial Planning Resource Hub

Discover how to navigate your cross-border career with our detailed eBook, “Understanding the Canada-U.S. Totalization Agreement.” This guide unravels the complex rules around pensions and living requirements for Canadians and Americans with careers that extend over both countries.

Discover the financial benefits of swapping the snowy landscapes of Ontario for the sunny shores of Florida through our insightful eBook, "An Income Tax Comparison - Moving from Ontario to Florida." This timely guide outlines the tax implications of relocating, offering a detailed analysis of the tax rates in both regions and how they impact [...]

A good savings or investment account allows you to avoid tax on contributions, income, and distribution. Not all available options meet these goals. For Americans living in the U.S., the Health Savings Account (HSA) does, in certain circumstances. For Americans living in Canada, though, the HSA’s benefits disappear as contributions cannot continue and tax liability opens up in Canada for income in the plan. Similarly for Canadians living in the U.S., benefits cease for Tax-Free Savings Accounts (TFSAs) and Registered Education Savings Plans (RESPs). Take a look at this e-book for more detail on the savings and investment plans available and see how they compare.

There are many income tax implications to leaving Canada and establishing tax residency in the US. Ask Cardinal Point about its many publications on this topic. The tax issues become very complicated when a nonresident of Canada takes an early distribution of a Registered Retirement Savings Plan (RRSP). Cardinal Point, registered and licensed in Canada and the US, is well-positioned to provide financial, tax, and investment advice. Their approach is to manage investment and tax accounts on a Canada/US tax-effective basis, ensuring that Canadian withholding tax paid can be recovered over time.

The Lifetime Capital Gains Exemption (LCGE) is available to all Canadian residents and Americans living in Canada as a tax deduction on the sale of a Qualified Small Business Corporation (QSBC). It is indexed to inflation, and it can be used in part. Three tests must be met to claim an LCGE, and there are complicated regulations governing each of these. There are implications regarding succession planning, and its benefits can be multiplied through use of family trusts. An LCGE can be a significant deduction, and Canadian or dual Canada/US tax residents need professional help devising a tax-efficient strategy.

Many Canadians move for career opportunities to the U.S., work and raise families, and then plan to relocate back to Canada. A qualified tuition and educational savings plan for children (a 529 plan) is exempt from taxation in the U.S., in most cases even when a child attends a Canadian university. If you are a Canadian who is considering such a plan, and especially for anyone with an investment in a 529 plan who is moving back to Canada, clear expert advice from a cross-border financial specialist is a very prudent step.

For individuals moving from Canada to the U. S. and planning to sell their Canadian home, there are different Canadian and U.S. tax implications. To avoid or minimize tax liability, specific criteria need to be met around the questions of whether tax residency is in Canada or U.S. when the sale occurs and if the home qualifies as a principal residence. If sold while still a Canadian tax resident, a status that can be maintained for a period beyond the moving date, exemptions apply. Additional compliance requirements need to be met when the property is sold by a U.S. tax resident.

Few financial advisors are licensed or equipped to provide investment advice for American and Canadian cross-border clients, and there is a lot of bad counsel circulating at present. The best advice usually leads to a choice from three main options, but which one?

It’s a good idea for Americans living in Canada to understand which kinds of registered investment accounts they can have without having to confront onerous taxes and paperwork. Two kinds of plans are friendliest for Americans: The Registered Retirement Savings Plan (RRSP) and the Registered Retirement Income Fund (RRIF). Effectively, U.S. citizens are simply taxed […]

Americans living in Canada face tax-reporting obligations that can be burdensome—even to the point where one might consider renouncing their citizenship. Our advice is to take a step back and think it through. As Terry Ritchie explained recently in this Globe and Mail video segment, renouncing one’s citizenship not only involves administrative hurdles, but can […]

One of the biggest and most important expenses in retirement is health care. Unfortunately, those who don’t plan ahead for adequate health insurance coverage can face tremendous costs and obstacles that can undermine a successful retirement. This article helps to inform those looking forward to retirement about their four main Medicare coverage options, as well as the availability of Medicaid. Additionally, it explains Medigap supplemental insurance, employer-sponsored healthcare insurance plans for retirees, the multiple tax advantages of Health Savings Accounts, and various types of Long Term Care insurance. That information can empower you to make more informed and strategic decisions, based on uniquely individual factors such as your age, net worth, and medical history.

Although retirement can last two or three decades – and typically does for people who reach the retirement age milestone – most people don’t invest much time in planning for it. In fact, people typically spend more time and effort planning their next vacation. But without proper preparation, retirement can present unnecessary challenges and stressful obstacles, both personally and financially. That’s why it is so important to start planning right away, with experienced guidance from tax professionals and financial advisors. That ensures that your retirement years will be satisfying, secure, and in the best possible location. This article provides some great insights into retirement planning, which can actually be very inspiring and just as much fun as vacation planning.

When gifting assets in a non-arm’s length transaction, there are many financial and tax complexities to consider based on U.S. and Canadian laws. Where you and the recipient live, their immigration status, and the nature of their relationship all come into play. That’s true whether you give the gift of college tuition or a down payment on a home to a child, you are using an estate planning gifting strategy between spouses to avoid lengthy probate, or you are gifting property like jewelry or automobiles. This article provides insights to help you avoid unwanted and potentially steep tax liability and to ensure a smoother gift giving process.

Traveling across national borders for employment is increasingly common, and many Canadians derive income while working in the U.S. Similarly, many U.S. residents visit Canada to work for Canadian employers. But doing so can potentially expose you to complex tax rules, liabilities, and double taxation. That’s why strategic cross-border tax planning is essential to ensure full compliance with the tax laws of both nations while helping to minimize the taxes you are obligated to pay. This blog explains the nuances of cross-border tax law, how those may impact you, and solutions for navigating the complicated tax regulations.

Before you launch a business, be aware that there are various ways to legally incorporate in Canada. You can choose the simplest, which lets you operate as a sole proprietor; you can establish a partnership or limited liability company; or you can create a full-fledged corporation with shareholders. Each structure has its own unique pros and cons, depending on your goals and the nature of your business operations. Choosing the appropriate structure for your particular situation can also be a useful strategy for managing your taxes, and it may potentially reduce your tax liability.

If you or someone you wish to bequeath assets to in your estate plan is a “U.S. person,” according to the tax authority definition, there are estate planning strategies you can implement to minimize potential U.S. estate taxes. That kind of planning is particularly important if you anticipate exposure to such taxes in excess of the amount that may be protected by available deductions, exclusions, and treaty credits. When considering any proposed plan or strategy, it is also important to factor in the associated costs and ongoing compliance requirements. The applicable tax rules are extremely complicated, and it is strongly advised that you consult a qualified cross-border tax and financial estate planning professional.