Cross-Border Transition Planning Resource Hub

Before Canadians become permanent residents of the U.S., it is important to understand and prepare for the significant differences between these countries as to cross-border financial planning. Mistakes and missed deadlines in these matters can be costly. There are many considerations. Some are obvious, but many are not.

A very common question at Cardinal Point for Americans moving to Canada is how to navigate around the CRA’s Five-year Deemed Disposition Rule. Canada applies an exit tax on unrealized capital gains for Americans returning to the U.S. after minimum five years of tax residency in Canada. Given the increased information sharing between CRA and IRS, failure to file the appropriate forms will result in penalties.

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.

In most cases, a non-U.S. citizen or non-U.S. resident spouse cannot receive U.S. Social Security spousal benefits if they live outside the U.S. for six consecutive months. However, the question 'Can a foreign spouse receive social security benefits?' has a nuanced answer. A foreign spouse who is a citizen or resident of Canada, among certain [...]

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.

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 […]

In this video, Terry Ritchie speaks with InvestmentExecutive.com’s Rudy Mezzetta about what U.S. citizens living abroad need to know when considering renouncing their U.S. citizenship. Though the numbers of expatriations are reaching historical highs, the process is not an easy one. After filing with the Department of Homeland Security, an individual wishing to renounce citizenship […]

Anyone planning to move from Canada to the United States, or who has already made that move, must give careful consideration to how they manage their Canadian dollar denominated investments. Otherwise they risk consequences such as having those investment accounts frozen or discovering that their Canadian-based financial professionals are prohibited from managing their investments once they become U.S. residents. But to make matters even more complicated, they may be unable to find a qualified financial and tax advisor in the United States to manage their Canadian dollar assets. The good news is that you have viable options and excellent solutions to help you avoid these and other unwanted and costly scenarios. All of that is explained in this highly informative and helpful blog.

If you are planning to relocate from Canada to the United States, you will still want to hold on to the wealth potential of Canadian investment accounts. But there are special considerations and tax planning strategies for those who have Registered Retirement Savings Plans, Registered Retirement Income Funds, Locked-In Retirement Accounts, and/or Life Income Funds. This insightful article provides an overview of the applicable rules and regulations along with key strategies for optimizing your tax and wealth management planning. It also describes the kind of tax reporting that may be mandatory to ensure full compliance with the laws of both Canada and the U.S.

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.

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.

Moving to the U.S. from Canada or any other country will have tax implications, which are often quite complex. Learn more about the way tax liability in the U.S. 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.