MOVING TO THE U.S. FROM CANADA
Coordinating a move to the U.S. from Canada without a financial transition plan can lead to adverse tax consequences and missed financial planning opportunities.
MOVING TO THE U.S. FROM CANADA
Coordinating a move to the U.S. from Canada without a financial transition plan can lead to adverse tax consequences and missed financial planning opportunities.
Moving to the U.S. from Canada requires thoughtful financial planning strategies that address departure taxes, transitioning assets and investment interests across the border, managing Canadian dollar investment accounts while tax managing them based on the U.S. tax rules, as well as creating a cross-border estate plan. Cardinal Point helps coordinate the financial transition across the border and then continues to oversee the relationship when the move is complete. We focus on assisting clients in the following areas:
- Exit and departure planning strategies to minimize tax and prevent residency questions or issues
- Preparation of Canadian departure tax returns
- Determine best approach to wind up Canadian corporations
- Advice on specific assets that should transfer to the United States or remain in Canada
- Transition of specific Canadian investment accounts to the United States
- Coordinated investment management services for U.S. and Canadian accounts
- Advice on Canadian retirement distribution strategies while residing in the United States
- Holistic advice on cross-border financial and estate planning
- Incorporation of U.S. gift and estate strategies within the financial plan
- U.S. investment and retirement account creation
- Assistance with ongoing cross-border tax planning strategies
- “Canada-U.S. Tax Treaty” advice to avoid double taxation
- Guidance on retirement benefits, such as CPP, OAS, Social Security and Medicare
- Assistance with currency conversion strategies
- Canadian stock option and company bonus plan advice before exiting Canada
- Residential and commercial real estate advice
- Health, life, disability, long-term care, business and property insurance review
- Guidance on the unique economic and regulatory environment in the United States
- Personal and corporate Canada and U.S. tax preparation including annual foreign account disclosure filings
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OUR RECENT PUBLICATIONS
Ebook: Canadian Deductibility of 401(K) Contributions and U.S. Deductibility of RRSP Contributions
Residents of Canada: What are the Canadian and U.S. Tax Ramifications when being forced to liquidate a U.S. brokerage account Ebook
Clarifying the U.S. Minimum Distribution Rules
Regulations around Required Minimum Distributions (RMDs) are quite complex and simultaneously extremely important. Failing to take an RMD will result in a 50% excise tax. There is a precise calculation to determine an RMD amount for a given year, and you can delay your first RMD. There are specific situations that permit extending the period in which you must take a distribution and rules that apply in the event of death. There are regulations around RMDs applicable to inherited accounts, and these have completely changed since passage of the SECURE Act in 2019. Opportunities exist to delay RMDs for a Designated Beneficiary not yet chosen. There are a multitude of tax implications around all of these issues, and Cardinal Point is eminently qualified to offer you tailored guidance in your planning strategies.