Americans Living in Canada Resource Hub

New Ebook - Residents of Canada: What are the Canadian and U.S. Tax Ramifications when being forced to liquidate a U.S. brokerage account New enforcement of existing U.S. nonresident client regulations regarding U.S. taxable brokerage accounts means that many of these accounts are being forced to close, loosely based on the location of the primary [...]

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.

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? Cardinal Point is an advisor firm that specializes in this area as it meets the highest industry standards and is licensed to manage investments in both countries.

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.

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 […]

In this video clip, Terry Ritchie updates Rob Carrick on the IRS crackdown on Americans who live and work in Canada but haven’t been filing their annual tax returns. There is serious documentation required by U.S. tax authorities regarding financial holdings. Last September, a new program was introduced for Americans living and working abroad: the […]

In this video segment, Terry Ritchie, cross-border tax and estate planning expert, discusses how a new measure in the Patient Protection and Affordable Care Act, also known as “Obamacare,” could result in a surprise for U.S. citizens living in Canada. Effective for 2013, a 3.8% surtax will be imposed on passive income such as interest, […]

Cross-border residency may create numerous significant Canadian tax issues for you, in both countries. That’s increasingly important since many people now work remotely across borders. Certain criteria are used to determine Canadian residency for tax purposes, but filing official forms to determine your tax status may also trigger reviews or audits that are not in your best interest. On the other hand, cross-border taxpayers may avoid double taxation thanks to treaties other countries sign with Canada. Tax rules are always complex, and those involving dual residency can be extremely complicated. That is why insight from an expert cross-border tax planning professional is strongly advised.

US citizens who renounce citizenship or Green Card Holders who surrender their Green Cards may be subject to US Expatriation Tax. If you are considering this, it might be wise to seek advice about questions around citizenship, long-term residency, and Covered Expatriate status, as well as the required forms, applicable rules, and tests surrounding this tax. Cardinal Point has the answers to these complex issues and offers advice specific to your unique circumstances.

If you’re a non-resident of Canada but are planning to rent out or sell a home you own within the country, you’ll face certain tax consequences. In this blog post, we’ll take a look at the most common tax obligations associated with both rental and sale of a Canadian principal residence.

Good news on the tax front as the IRS lengthens life expectancies for its RMDs. The result of this may be an effective tax cut for you. If you are a US citizen or expat living in Canada, Cardinal Point Wealth Management can assist with complicated cross-border financial and tax planning.

Moving to Canada from the U.S. or any other country will have tax implications, which are often quite complex. Learn more about the way tax liability in Canada is determined and how this may impact you in this article.

When our clients move from Canada to the U.S. or vice versa, they often leave real estate behind. While some choose to sell their former residence, others want to convert it into a rental property. Whichever action they take, tax considerations must be made. Learn more about the Canadian ‘change of use’ rules that should influence these decisions in this article.

Home equity in Canada has significantly increased, and some Canadians are now thinking about purchasing vacation homes. Thanks to a favorable Canadian-to-U.S. dollar exchange rate, many of them are also considering the U.S. as the possible location of such vacation property. If you are among them, you need to consider your wealth structuring options before you make a purchase. Learn more in this article.

Everyone should save for retirement and rainy days. However, once you’ve established an emergency fund in a basic savings account, the decisions you’ll need to make about how to invest your money become more complex. This is doubly so if you’re moving from the U.S. to Canada or living cross-border. In this article, we’ll take a look at why health savings accounts (HSAs), which are tax friendly in the U.S., may not be as tax friendly in Canada.

What You Need to Know About the Canada and U.S. Tax Treaty
Are you considered a taxpayer in both the U.S. and Canada? If so, a better understanding of the two countries’ income tax treaty—established in 1980—may help you minimize your tax burden. In this blog post, we dissect several examples of residency and the treaty’s implications.

Minimizing liability when paying income taxes can be complicated for the nearly 1 million American citizens living in Canada. Terry Ritchie, Cardinal Point Wealth Management Vice President, recently shared his expertise on this topic with Financial Planning for Canadian Business Owners podcast host Jason Pereira. From the tax definition of U.S. resident and income tax filing requirements [...]

Canadians become permanent residents of the U.S. for many personal and professional reasons. Prior to a move, it’s important to be organized and understand that significant differences exist between Canada and the U.S. when it comes to cross-border financial planning and investment matters. The following actionable items should be considered when cross-border transition planning from […]

As mentioned in a previous article, many banks and brokerage firms are informing U.S. non-resident clients that they are no longer able to service their accounts and that their accounts have been restricted or even closed.  In that same article, we outlined the following: U.S. citizens and Green Card holders who reside in Canada or […]

As noted by several articles that have been published, many banks and brokerage firms, including Wells Fargo, Morgan Stanley, Fidelity, and others, are informing U.S. non-resident clients that they are no longer able to service their accounts and that their accounts have been restricted or even closed. In this case, the term “non-resident” is not […]

Starting a new chapter in your life by relocating north of the border can be exciting. However, there are many financial and tax implications to take into consideration before you embark on this path. Whether you are an American citizen, a Green Card holder, or otherwise a U.S. resident taxpayer, you may have built up […]

Affluent individuals living in the United States often use a U.S. revocable living trust (RLT) for estate-planning purposes. Such a trust provides confidentiality and flexibility in how assets are managed, as it eliminates the specter of probate. A revocable living trust is transparent for U.S. income, gift and estate-tax purposes. The individual who transfers (settles) […]