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Cross-Border Tax Planning | Americans and Canadians living and working in the U.S. and Canada

CROSS-BORDER TAX PLANNING

Cross-border tax planning for Americans and Canadians living and working in both countries can involve multiple tax considerations, treaties, rules, and regulations. Learn how Cardinal Point can minimize your tax exposure in the U.S. and Canada while ensuring you comply with all local and state tax laws. Get a personalized plan that is tailored to your individual situation.

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CROSS-BORDER TAX PLANNING

Cross-border tax planning for Americans and Canadians living and working in both countries can involve multiple tax considerations, treaties, rules, and regulations. Learn how Cardinal Point can minimize your tax exposure in the U.S. and Canada while ensuring you comply with all local and state tax laws. Get a personalized plan that is tailored to your individual situation.

Let’s Talk
Cross Border Pathway

Why do Americans and Canadians living and working in the U.S. and Canada need Cross-Border Tax Planning?

Americans and Canadians living and working in both countries need to understand the complexities of cross-border tax planning to minimize their tax liabilities. The U.S. and Canada have different tax laws, which could lead to double taxation if the resident doesn’t understand how the two systems interact. By having a sound understanding of both systems, individuals can use available deductions and credits in each jurisdiction to reduce their tax burden, as well as take advantage of various international treaties between the two countries.

Additionally, depending on the individual’s residency status, different tax rates may apply to contributions or gains from each account and any distributions. Understanding these complexities can help ensure that individuals receive all available deductions, credits, and other benefits when using both countries’ retirement savings plans. Consulting with a professional can also help to maximize all available strategies for successful cross-border tax planning.

How can a Cross-Border Financial Advisor help with Cross-Border Tax Planning?

A cross-border financial advisor can help manage individuals’ global portfolio and assist in meeting their goals efficiently and effectively. A knowledgeable cross-border financial advisor will have a thorough understanding of both the U.S. and Canadian tax systems and the U.S./Canada tax treaty between both countries, allowing clients to help maximize deductions and credits for minimizing taxes paid on both sides of the border. Additionally, a cross-border financial advisor may be able to suggest qualified retirement plans that could help save on taxes while simultaneously building long-term wealth.

One of the complexities of holding retirement accounts for Americans and Canadians who live and work cross-border is understanding the differences between qualified retirement plans in each country. For example, an American working in Canada may be eligible to open and contribute to a 401(k) plan in the U.S. and a Registered Retirement Savings Plan (RRSP) in Canada. Still, rules pertaining to contribution limits, withdrawal requirements, taxation of withdrawals, and rollover of funds must be understood before investing in either plan.

canada and united states cross border tax planning

Who Can Benefit from Cross-Border Tax Planning

U.S.-Canada cross-border tax planning can benefit a wide range of individuals and entities, including:

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    Individuals who are U.S. citizens or residents and have Canadian investments or income, or Canadian citizens or residents who have U.S. investments or income.
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    Expatriates who have relocated from one country to the other and have financial interests in both countries.
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    Employees of multinational corporations who work in both the U.S. and Canada.
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    Business owners with cross-border operations or investments.
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    Dual citizens of both countries who have tax obligations in both jurisdictions.
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    Non-residents who have U.S. or Canadian source income.
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    Estates with assets located in both countries.

By implementing U.S.-Canada cross-border tax planning, these individuals and entities can ensure compliance with tax laws in both countries, reduce tax liabilities, and optimize their financial situation. Bottom line, U.S.-Canada cross-border tax planning is crucial for anyone with cross-border financial interests or obligations between the two countries to ensure they meet their obligations while minimizing their tax burden.

US Citizens Living in Canada

U.S. Citizens Living in Canada

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Moving to Canada from the U.S.

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US/Canada Investment Accounts

Canadians Living in the U.S.

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Moving to the U.S. from Canada

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cross border wealth management

Expatriates Living Abroad

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Investment accounts in Canada and the U.S.?

Our team manages assets in both countries
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Speak with a cross-border financial planner

We handle all your cross-border tax & financial planning needs
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OUR RECENT PUBLICATIONS

gifting, college funds

Cross Border Financial Planning – Non-Arm’s Length Cross-Border Gifting

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.

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college fund RRSP

Cross Border Wealth Management: Navigating your RESP

A Registered Education Savings Plan (RESP) is a powerful asset when saving to pay for post-secondary education. College tuition had already become almost prohibitively expensive, years before recent historic inflationary pressures made the cost of higher education rise even more dramatically. That’s a constant challenge for parents who want to help fund their children’s post-secondary education. Navigating those challenges becomes more complicated when the RESP subscriber or the beneficiary reside in different countries. This article gives you an informative overview of some of the most common challenges, and insight into the most effective ways to proactively manage an RESP as part of your cross-border tax and financial planning.

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cross-border worker

Navigating Residency and Income Sourcing for Internationally Mobile Employees in Canada

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.

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How We Help

  • Cross-Border Financial Planning
  • Cross-Border Tax Planning
  • Cross-Border Estate Planning
  • Cross-Border Investment Management
  • Americans Living in Canada
  • Canadians Living in the U.S.
  • Moving to Canada from the U.S.
  • Moving to the U.S. from Canada
  • Expatriates Living Abroad

What We Do

  • Investment Management
  • Wealth Planning
  • Tax Planning & Preparation
  • Private Wealth Services for U.S. Residents
  • Private Wealth Services for Canadian Residents
  • Cross-Border Financial & Tax Planning
  • Business Management for Athletes

Resources

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  • Canadian and U.S. Expat Tax Planning
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  • Calgary Financial Planner
  • Custodian Closed Your Cross-Border Investment Account?
  • Part 3 Form CRS

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  • Does it make financial sense to renounce your U.S. citizenship?
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“Cardinal Point” is the brand under which dedicated professionals within Cardinal Point Capital Management, ULC provide financial, tax and investment advisory, risk management, financial planning and tax services to selected clients. Cardinal Point Capital Management, ULC is a US registered investment advisor and a registered portfolio manager in Canada (ON, QC, MB, SK, NS, NB, AB, BC). Advisory services are only offered to clients or prospective clients where Cardinal Point and its representatives are properly registered or exempt from registration. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.