In the wake of the U.S. presidential election, cross-border tax, and financial planner Kris Rossignoli shares critical insights into the evolving financial landscape for individuals navigating U.S.-Canada tax complexities. With potential extensions to the 2017 U.S. tax cuts under President-elect Donald Trump, Rossignoli notes significant considerations for cross-border clients, particularly around lifetime gift tax exemptions and income deferral strategies.
For U.S. citizens considering a move to Canada, Rossignoli highlights rising interest following the election results. Dual citizens face fewer immigration hurdles but must carefully evaluate the tax implications of filing returns in both countries. Conversely, Canadian clients frustrated by rising capital gains taxes are eyeing a return to the U.S., spurred by the allure of lower tax rates. However, they face challenges like Canada’s departure tax, which imposes capital gains taxes on most assets deemed sold upon leaving the country.
Rossignoli and other experts emphasize the importance of comprehensive planning when making international moves, addressing issues such as legal residency, health care, and retirement portfolios. From managing RRSP withdrawals as non-residents to navigating complex tax treaties, Rossignoli underscores the intricate interplay between tax laws on both sides of the border, urging clients to plan strategically amid political and economic shifts.
