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Pro Ice Management Group Team to Join Focus Partner Firm Cardinal Point, Enhancing Cardinal Point’s U.S. – Canadian Cross-Border Expertise & Establishing Its Presence in Professional Athlete Market

NEW YORK, NY / ACCESSWIRE / July 1, 2022 / Focus Financial Partners Inc. (NASDAQ:FOCS) (“Focus”), a leading partnership of independent, fiduciary wealth management firms, announced today that the team from Pro Ice Management Group Inc. (“Pro Ice”) will join Cardinal Point Capital Management ULC (“Cardinal Point”). The Pro Ice team is expected to join Cardinal Point in the third quarter of 2022.

The team from Pro Ice provides comprehensive business management, tax planning and family office services focusing on current and former professional hockey players and their families in the United States and Canada. Tyler Skinner, currently the President and CEO of Pro Ice, will join Cardinal Point as Director, Cardinal Point Sports Management. Grant Skinner, Founder and Chairman of Pro Ice, will also join Cardinal Point as Director, Cardinal Point Sports Management. The addition of the Pro Ice team will enhance Cardinal Point’s U.S. – Canadian cross-border expertise and establish its presence in the professional athlete market.

The Pro Ice and Cardinal Point teams share common values and substantial expertise in helping clients achieve their financial and life goals. Joining Cardinal Point is a natural next step, enabling the Pro Ice team to enhance the business management, tax planning and family office services they provide to clients, while bolstering Cardinal Point’s multi-family office capabilities and providing a pre-eminent brand with which to enter the professional athlete market.

“We are thrilled to welcome Tyler, Grant and the rest of the Pro Ice team to the Cardinal Point family,” said Jeff Sheldon, Founder and CEO of Cardinal Point. “Their team is one of the most well recognized in the professional athlete business management and tax planning industry, and we quickly sensed a strong cultural alignment in our commitment to providing exceptional client service. We could not have found a better fit to enhance our cross-border expertise and enter the professional athlete market.”

“We are very excited to be joining the Cardinal Point team and are confident that their extensive resources and infrastructure will enhance the value we add to clients,” said Tyler Skinner. “We look forward to helping Cardinal Point build out their professional athlete and multi-family office service offerings.”

“We are delighted that Tyler and his team will be joining Cardinal Point, enhancing its leadership in cross-border business management and adding a differentiated expertise in working with professional athletes,” said Rudy Adolf, Founder, CEO and Chairman of Focus. “This addition is another example of Focus’ ability to facilitate business and service expansion through its robust M&A capabilities and deep industry expertise, while also helping to address the succession planning needs of founders.”

About Focus Financial Partners Inc.
Focus Financial Partners Inc. is a leading partnership of independent, fiduciary wealth management firms. Focus provides access to best practices, resources, and continuity planning for its partner firms who serve individuals, families, employers and institutions with comprehensive wealth management services. Focus partner firms maintain their operational independence, while they benefit from the synergies, scale, economics and best practices offered by Focus to achieve their business objectives. For more information about Focus, please visit www.focusfinancialpartners.com.

About Cardinal Point
Cardinal Point is an independent cross-border wealth management firm with offices in both the United States and Canada. Cardinal Point provides personalized investment and estate, tax and cross-border financial planning solutions to affluent individuals and families located in both the United States and Canada. For more information about Cardinal Point, please visit https://cardinalpointwealth.com/.

Cautionary Note Concerning Forward-Looking Statements
This release contains certain forward-looking statements that reflect Focus’ current views with respect to certain current and future events. These forward-looking statements are and will be, subject to many risks, uncertainties and factors relating to Focus’ operations and business environment, including the impact of the conflict in Ukraine, which may cause future events to be materially different from these forward-looking statements or anything implied therein. Any forward-looking statements in this release are based upon information available to Focus on the date of this release. Focus does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could affect Focus may be found in Focus’ filings with the Securities and Exchange Commission.

Investor and Media Contacts
Tina Madon
Senior Vice President
Head of Investor Relations & Corporate Communications
Focus Financial Partners
P: +1-646-813-2909
tmadon@focuspartners.com

Charlie Arestia
Vice President
Investor Relations & Corporate Communications
Focus Financial Partners
P: +1-646-560-3999
carestia@focuspartners.com

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.

A Canadian inheriting a U.S. IRA faces different tax implications than an inheritance in Canada would generate, namely, income tax and income withholding in the U.S. and income tax in Canada. It may be possible though for such a beneficiary to defer taxes in both countries by establishing an Inherited IRA account. Cardinal Point’s cross-border specialists are well positioned to guide you through the rules, procedures, and reporting requirements governing this option.

If you are currently a Canadian tax resident who is thinking of leaving Canada to move to another country, you should consider the tax implications of the Canadian Deemed Departure Tax. At a high level, the Canadian Deemed Departure Tax is a deemed disposition of all of your assets (other than those assets which are eligible to receive an exemption) for their fair market value (FMV) immediately before the end of your Canadian tax residency. The Canadian Deemed Departure Tax was introduced to maintain Canada’s right to tax any gain that was earned during your Canadian residency period. It was originally established after a prominent family left Canada with significant gains that were not taxed upon their departure.

Exceptions to the Deemed Departure Tax
There are five general asset exceptions to the Canadian Deemed Departure Tax:

1. real property and resource property situated in Canada
2. capital property used in a business carried on by the taxpayer through a permanent establishment in Canada
3. “excluded right or interest” (defined under the Income Tax Act of Canada), including: RRSPs, RRIFs, IRAs, pension plans, and life insurance
4. employee security/stock options
5. assets subject to the “short-term resident” rule. This entails property owned when you last became a tax resident of Canada or property you inherited after you last became a tax resident of Canada if you were a tax resident for 60 months or less during the 10-year period before you ceased Canadian tax residency. 

Departure Tax Filings
In your year of departure from Canada, ensure that you report your Date of Departure on your T1 – Income Tax and Benefit Return. This informs the Canada Revenue Agency (CRA) that you are no longer a Canadian tax resident. You may also need to complete the following information forms along with your T1 Departure Return:

• T1243 – Deemed Disposition of Property by an Emigrant of Canada
  • This form reports the deemed disposition of assets as a result of the Canadian Deemed Departure Tax
  • This form is completed in addition to listing the deemed dispositions of these assets on Schedule 3 – Capital Gains (or Losses)
• T1161 – List of Properties by an Emigrant of Canada
  • This form is to be completed where the FMV of all “reportable properties” at date of departure is > $25,000 CAD
  • “Reportable properties” include any property other than:
    • cash (including bank deposits)
    • property that is an “excluded right or interest” (defined under the Income Tax Act of Canada), including: RRSPs, RRIFs, IRAs, and pension plans. Note that subparagraphs (c), (j), and (l) of the definition of “excluded right or interest” per the Income Tax Act of Canada are excluded for purposes of the T1161.
    • property owned at time last became resident of Canada, if resident for 60 months or less during the 120-month period that ends at the time of departure
    • personal-use property (clothing, household goods, cars, collectibles) with FMV < $10,000
  • This form should include:
    • shares and mutual funds
    • bonds and debentures
    • real estate (Canadian AND foreign – including any U.S. seasonal or personally owned property)
    • stock options
    • interests in trusts, partnerships, and life insurance policies

Canada-U.S. Tax Treaty – Article XIII (7) Election
If you are departing Canadian tax residency and subject to the Canadian Deemed Departure Tax, you can elect to have sold and repurchased property at FMV for U.S. tax purposes prior to emigration from Canada. For a U.S. resident individual, this election accelerates U.S. tax but allows a foreign tax credit to be claimed on the U.S. tax return for the amount of Canadian Deemed Departure Tax paid. For a non-U.S. resident person, this election adjusts the U.S. cost basis of the assets subject to the Canadian Deemed Departure Tax to their FMV on date of departure from Canadian tax residency.

Other Possible Elections
There are various loss elections, payment deferral elections, and former resident elections that can be made to reduce or reverse the Canadian Deemed Departure Tax. These are beyond the scope of this blog, but we are happy to discuss the applicability of these elections to your individual situation. 

Conclusion
Quantifying your Canadian Deemed Departure Tax can be a difficult task. This is further complicated by the various exemptions and elections available. It is best to review your unique situation with a qualified cross-border tax advisor and financial planner as soon as you consider a move from Canada and well ahead of the actual move date. There may be opportunities to structure your financial affairs before being subject to the full Canadian Deemed Departure Tax or opportunities to better structure yourself after leaving Canadian tax residency. For more information, please contact Cardinal Point.

If you are considering moving from Canada to the US, you should plan well in advance—especially for financial and tax considerations. Residency is a key tax issue, and as it is not specifically defined but more inferred by the Canada Revenue Agency, extreme care must be taken to ensure compliance. Cardinal Point specializes in precisely these issues and can offer you a complete checklist of very specific actions to take as you move through this complicated process as well as expertise in both Canadian and US investment opportunities.

Read our E-book to learn more about what you need to know about moving from Canada to the U.S.