Blog and Articles

It’s that time of year again. Time to plan for family gatherings and travel. Time to set your New Year’s resolutions. Time to try and stall the swift passage of time. Unfortunately, it is also the time of year when we wait with bated breath to learn if parliament is going to pass tax legislation [...]

Are you a Canadian living, working, or planning to retire in the United States? Managing income, investments, retirement savings, and taxes across two countries involves navigating complex financial systems, but with the right guidance, it is possible to achieve clarity and success. With over 800,000 Canadians residing in the U.S., cross-border financial planning plays a [...]

Professional athletes who compete internationally face complex tax situations, especially in Canada where unique tax rules can lead to unexpected liabilities. This blog covers critical Canadian tax traps athletes will want to avoid when entering, leaving, or performing in Canada, plus effective strategies and practical examples to help you successfully manage cross-border tax obligations.

In Ontario, appointing an executor (or “estate trustee”) who resides outside of the province can complicate estate administration. Ontario’s probate rules and requirements for non-resident executors are stricter, affecting the process for dealing with assets, probate requirements, and the need for security bonds. This blog outlines key considerations for Ontario residents thinking of appointing a non-resident executor, including practical examples and best practices.

For high-net-worth Canadians who own private corporations, moving to the U.S. involves a series of complex tax considerations. But effective tax planning can help minimize exposure to both Canadian and U.S. tax obligations. This blog outlines key tax strategies for those looking to make the transition, with examples that illustrate the impact of those decisions.

Kris Rossignoli, a cross-border tax and financial planner at Cardinal Point Wealth Management, is advising Canadian snowbirds to prepare for the rising costs of wintering in the U.S. With inflation and a weak Canadian dollar driving up living expenses, Rossignoli stresses the importance of proactive financial planning.

As the 2024 year-end approaches, it’s a great time to review your finances and make adjustments to optimize your tax situation, retirement savings, charitable giving, and more. Here are essential financial and tax planning considerations to help you make the most of 2024 and set yourself up for a stronger financial future.

Canadians with U.S.-based assets, like real estate or U.S. corporate shares over $60,000 USD, must navigate U.S. estate tax rules—even amid potential reforms. The current U.S. estate tax exemption is $13.61 million USD for 2024, but it may drop to $7 million USD in 2026. While the tax mainly impacts the very wealthy, all executors must file U.S. estate tax returns to release U.S. property.

Delays in obtaining IRS transfer certificates can take over two years, creating financial and emotional strain. Terry Ritchie, Vice President and Private Wealth Manager at Cardinal Point, emphasizes proactive planning to avoid these challenges. Options include Canadian mutual funds with U.S. exposure or restructuring U.S. investments.

In the wake of the U.S. presidential election, cross-border tax, and financial planner Kris Rossignoli shares critical insights into the evolving financial landscape for individuals navigating U.S.-Canada tax complexities. With potential extensions to the 2017 U.S. tax cuts under President-elect Donald Trump, Rossignoli notes significant considerations for cross-border clients, particularly around lifetime gift tax exemptions [...]

In the engaging "Politics and Your Financial Plan" webinar hosted by Cardinal Point Wealth Management, viewers gain essential insights into the interplay between current economic trends and political developments, and how these factors shape investment strategies. Moderated by Matt Carvalho, Chief Investment Officer, the session features financial experts Terry Ritchie, Vice President & Private Wealth [...]

Estate Planning: Why signed legal documents are not enough. The Challenge Often when a loved one becomes incapacitated or dies, there are two tragedies. The first one is obvious. The second one isn’t: it’s incomplete estate planning. Many tragedies in estate planning stem from one hard truth: a set of signed legal documents is NOT [...]

Moving to Canada? Don’t leave your 401(k), 403(b), or 457 behind! Understanding your U.S. retirement plan options is essential for a seamless financial future when transitioning across borders. Should you leave it as is, roll it into an IRA, or take a lump sum? Each choice has pros and cons, from tax implications to investment flexibility. Converting to a Roth IRA might even help maximize your savings. Whether you stay in the U.S. or settle in Canada, cross-border financial planning is key.

Managing cross-border retirement plans is a key consideration for Canadians commuting to the U.S. for work. Many commuters hold U.S. Lawful Permanent Resident (LPR) status and face unique financial planning challenges, particularly when balancing U.S. 401(k) and Canadian RRSP contributions. While both offer tax-deferred growth, contribution limits, and employer matching, significant differences exist in their structure, withdrawal rules, and tax treatments. For example, 401(k) contributions offer the advantage of employer matching, while RRSPs may provide more flexibility with early withdrawals. Deciding which plan to prioritize depends on factors like your residency, employment, and long-term retirement goals. To navigate this complexity and leverage cross-border tax benefits, working with a financial advisor who specializes in cross-border financial planning is essential.

As the U.S. presidential election nears, investors often consider adjusting their portfolios based on potential outcomes. However, historical data shows that election results typically have a minimal impact on long-term investment strategies. Markets are driven by complex factors beyond political events, making predicting movements based solely on election cycles difficult. Research demonstrates that disciplined, long-term investing yields more reliable results than attempting to time the market. At Cardinal Point, we emphasize the importance of maintaining a steady financial plan despite short-term volatility.

Choosing between a SEP IRA and a Solo 401(k) is crucial for U.S. sole proprietors and small business owners. Each retirement plan offers unique benefits. SEP IRAs are simple to set up and administer, making them ideal for businesses with variable income or those seeking ease of management. On the other hand, Solo 401(k)s allow for higher contribution limits and offer features like Roth options and loans but come with more administrative responsibilities. The right choice depends on your business goals, income level, and need for flexibility.

Understanding the complexities of foreign ownership in Canadian real estate is essential for non-Canadian investors. Recent legislative changes, such as the Prohibition on the Purchase of Residential Property by Non-Canadians Act, aim to curb foreign investment to address housing affordability. Additionally, measures like the Underused Housing Tax and Non-Resident Speculation Taxes in Ontario and British Columbia impose significant tax obligations on foreign property owners. Non-Canadians must stay informed to navigate these regulations successfully and avoid hefty penalties. Consulting with professionals is crucial for compliance and informed decision-making.

Navigating the world of cross-border entities is crucial in today’s interconnected economy. These hybrid entities, like LLCs, S Corporations, and NSULCs, present unique opportunities and challenges in tax planning across jurisdictions. For instance, an LLC enjoys pass-through taxation in the US but faces double taxation in Canada. Similarly, S Corporations and NSULCs require strategic planning to mitigate potential tax mismatches. Effective cross-border tax planning is essential to optimize tax outcomes and ensure compliance. Engage with cross-border tax experts to navigate these complexities.

Understanding the tax implications of leaving Canada is crucial for a smooth transition. Your tax residency status determines your obligations. When you cease to be a Canadian tax resident, you may face a departure tax on deemed dispositions of certain assets. Non-registered investments, stock options, TFSAs, RESPs, RRSPs, and property each have unique tax considerations. Filing requirements include the T1 Emigration Income Tax Return and other key forms. Post-emigration, income from Canadian sources will be taxed as a non-resident. Proper planning and consultation with a cross-border tax expert, like Cardinal Point, ensure compliance and optimal tax outcomes.