Hi David,
I have one and possibly two offers that may see me moving back to Canada in the next few months. Now that I have all my paperwork in order to pay taxes only in the US, I was wondering if you could tell me what the implications and necessary work will be to make the shift back?
I am uncertain as to what happens with my IRA account and my regular trading account with Ameritrade. I think they will suggest they transfer the regular account to Ameritrade Canada, but I'm not sure what happens with the IRA account.
Finally...I am curious about the sale of my house and the interim period when I leave my employer and the H-1B visa, but continue to live in the US (and possibly cross the border on a house shopping trip) during the last couple of weeks here? Will I run into issues with Customs and Immigration?
One more Q for you...given the same salary in both AB and ON...let's say 100k, what would the difference in taxes paid come year end?
Any comments/advice are appreciated.
cheers
Todd Zazelenchuk
todd at zazelenchuk.com
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david ingram replies:
Remember this is not perfect by any means BUT,
1. Your IRA is safe in the USA. My suggestion is that you leave it there even though I think that in the short term our dollar will continue to rise relative to the US dollar. In the long term, it is likely that the US dollar will be higher and it will mean that you have some money diversified one of the stronger economies in the world.
2. Move your accoun to Ameritrade Canada.
3. Provided you have lived in the house for 24 months, any profit up to $250,000 an owner is tax free. If you (or anyone else) is having to sell and move sooner than the 24 months, then you get to pro-rate the $250,000 by the number of months you are in it. i.e. 12 months equals $125,000 tax free.
4. Once you quit your job, theH1B is automatically cancelled. In a perfect world, you would contact a local Homeland Security Office - WWW.USCIS.GOV - US Citizenship and immigration Services - and explain that you are quitting and that you need time to sell the house. they will / should change your status to a B2 visitor.
With regards to the $100,000 income with no RRSP, Pension Plan, medical, charitable or other deductions, the 2004 federal tax is the same for every province at $19,401.49
Nunavit is $ 6,026.05
Alberta's is $ 8,305.93
Yukon Territories is $ 8,663.48
Northwest Territories is $ 8,679.86
BC's Provincial Tax is $ 8,967.25
Ontario is $10,550.06
Saskatchewan is $11,081.40
New Brunswick is $12,768.59
Manitoba is $13,127.09
Nova Scotia is $13,324.78
PEI is $13,454.91
Newfoundland is $14,852.00
My computer does not have a Quebec program installed but the rest were fun to do. I have not bothered doing that for ten years.
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