Hi,
My wife and I have received our visas to immigrate to Canada. Before we
do, are there recommendations to protect our assets from taxes? We are
also curious if it is possible to continue stock trading in Canada.
With best regards,
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david ingram replies
First, you should go to www.centa.com and read the "US / Canada Taxation"
section found in the second box down on the right hand side.
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Canada requires you to evaluate everything you own as you cross the border.
This can result in some hard to understand situations.
Please ignore exchange in the following examples.
For instance. If you bought a stock for $1,000, and
A it was worth $1,500 when you came to Canada and you sold it a year later
for $1,600. You would only owe Canada Capital Gains tax on $100, even though
the US would want tax on $600.00.
B. it was worth $500 when you crossed the border and you sold it for $1,600.
In this case, you would owe Canada tax on $1,100 even though for US
purposes, it would only be on $600.
C. It was worth $2,000 when you crossed the border and you sold it in Canada
for $1,600. In this case, you would have a $400 capital LOSS in Canada and a
$600 capital GAIN in the US.
There is another part about not being taxable in the US on Capital Gains on
US public stocks when you are not living in the US and that may apply to me
as a Canadian but does NOT apply to you as an American Citizen.
Canada has a very large Stock Market in the TSE (Toronto Stock Exchange -
www.tsx.com). Although not legal under Canadian Securities Regulations,
many US Brokers will continue to deal with you in Canada. I suggest that
you do not do so.
You should likely talk to Shaun Rickerby a broker with TD Waterhouse in
Greater Vancouver. Shaun went to the effort to be licenced or semi-licenced
in over 25 US states and specializes in Cross-border Securities Issues. I
have never met Shaun in person but have sent him a lot of people and no one
has had anything but praise for his service.
You can get hold of Shaun Rickerby with the information in the following Q &
A
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taxman at centa.com: Please see bottom of message if you wish to unsubscribe.
------------------------------------------
QUESTION:
Hi, I am legal resident in the US planning to move to Canada as a permanent
resident (Canadian Green Card). Would I need to close my brokerage account
in
the US? Or can I transfer my securities to a brokerage in Canada?
Thanks,
-------------------------------------------
david ingram replies:
In general, you can likely keep the US Brokerage account although strictly
speaking, it is illegal to do so. However, in 43 years in this business I
have never seen an attempt at prosecution by a Canadian Securities
commission if you keep it. (I know of several nasty situations where
Canadians in the US try and keep their Canadian Account alive. American
Securities Commissions have successfully stopped Canadian Securities dealers
from dealing with Canadians in the US.
Shaun Rickerby at TD Waterhouse is the best person to talk to about this.
Although a Canadian Broker, he went to the effort to get licenced in several
states and has associate brokers everywhere. His phone number is (604)
482-5188 and his email addresses are
Shaun.Rickerby at td.com or rickes2 at tdbank.ca
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
Home office at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or phone
outside of those hours as this is a home office)
email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com/> www.david-ingram.com
<http://www.david-ingram.com/>
Disclaimer: This question has been answered without detailed information or
consultation and is to be regarded only as general comment. Nothing in
this message is or should be construed as advice in any particular
circumstances. No contract exists between the reader and the author and any
and all non-contractual duties are expressly denied. All readers should
obtain formal advice from a competent and appropriately qualified legal
practitioner or tax specialist for expert help, assistance, preparation, or
consultation in connection with personal or business affairs such as at
www.centa.com <http://www.centa.com> . If you forward this message, this
disclaimer must be included."
Be ALERT, the world needs more "lerts"
------
international non-resident cross border income tax help assistance expert
preparation & immigration consultant david ingram, experts on rentals mutual
funds RRSP RESP IRA 401(K) & divorce preparer preparers consultants
This from "ask an income tax and immigration expert" from www.centa.com
<http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or
www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a
daily basis with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate problems for the
United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai,
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FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions
Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US
David Ingram specializes in giving expert income tax and immigration help to
American and Canadian citizens living out of their home countries from
Zimbabwe to Saudi Arabia to Mexico to China or Chile - Cross border,
Non-resident - dual citizen - out of country investments are all handled
with competence and authority.
Alaska, Alabama, Arkansas, Arizona,
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David Ingram expert income tax help and preparation of US Canada Mexico
non-resident and cross border returns with rental dividend wages
self-employed and royalty foreign tax credits
New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia,
Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers,
Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay,
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Phone consultations are $400 for 15 minutes to 50 minutes (professional
hour).
This is not intended to be definitive but in general I am quoting $800 to
$2,000 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you
lived in one country only - no self employment or rentals or capital gains -
you did not move into or out of the country in this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 would be the minimum with a move in or out of the country. These are
complicated because of the back and forth foreign tax credits. - The IRS
says a foreign tax credit takes 1 hour and 53 minutes.
$1,500 would be the minimum with a rental or two in the country you do not
live in or a rental and a business and foreign tax credits no move in or
out
$2,000 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection
period) with a three or four slips and no capital gains, etc. for $125.00
up.
With a Rental for $300
A Business for $300 - Rental and business likely $400
And an American only (lives in the US with no Canadian income or filing
period) with about the same things in the same range with a little bit more
if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS
be $400 and up.
TDF 90-22.1 forms are $25 for the first and $10.00 each after that when part
of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales) are likely $50.00 for the first and $20.00 each after
that.
Just a guideline not etched in stone.
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David Ingram expert income tax help and preparation of US Canada Mexico
non-resident and cross border returns with rental dividend wages
self-employed and royalty foreign tax credits
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