Canadians have long sought to escape harsh winters by spending time in the American Sunbelt. In recent years, with the dollar near parity, the depressed US real estate values, and a relatively strong Canadian economy, Snowbirds have shown stronger interest than ever in purchasing that winter get-away. The perennial question remains, however: what is the best [...]
HOW TO PREVENT YOUR LIFE INSURANCE FROM TRIGGERING U.S. ESTATE TAX In Canada, life insurance is often used as an effective estate planning strategy to ensure family protection, estate preservation and investment solutions. Although these advantages are indisputable, many Canadians with U.S. assets and U.S. citizens living in Canada may be shocked to learn that owning [...]
In the last few years, the U.S. real estate market has sparked interest in the eyes of Canadian investors. We are not solely talking about major investors, but smaller players looking to purchase a second home to escape those long Canadian winters. The process of purchasing U.S. real estate can be quite daunting for Canadians. As [...]
A new bill introduced by two U.S. senators is designed to have foreigners spur on the struggling U.S. economy. Senators Charles E. Schumer (D-NY) and Mike Lee (R-UT) have introduced The Visa Improvements to Stimulate International Tourism to the United States Act (VISIT-USA Act). The new legislation proposes two different variations of a 3-year non-immigrant residential [...]
Many dual Canadian and U.S. citizens have toyed with the idea of renouncing one of their citizenships in order to remove themselves from a taxation system. Seeing as though it is the United States which has most recently passed new legislation, we will deal with the U.S. taxation issues for U.S. expatriate. This new legislation entitled [...]
Under the Foreign Investment in Real Property Tax Act ("FIRPTA"), a person or entity purchasing a U.S. real property interest from a foreign person is required to withhold ten percent (10%) of the amount realized upon sale (gross sale price) from a foreign owner such as a Canadian. I.R.C. § 1445 What that means, in effect, is [...]
This is the time of year when Canadians snowbirds who have been seeking refuge in the U.S. from the Canadian winters start counting the days.
“When did we leave Canada exactly? Was it November 15, honey? How many days have we been gone?”
The magic number is 182. If you are a Canadian and you spend more than your allotted amount of days in the U.S. per year, you may be subject to U.S. income tax on your worldwide income. Beware, Canada will still consider you a resident which may lead to double taxation on your annual income.
