The problems of crossing the border while waiting for the resident alien / green card - expatriate - transborder immigration -
here is my question
dear taxman
I am a Canadian living in
bc and will be moving to Florida in 2 years for a corporate sponsored
greencard(xxxxxxxxxxxxx).the requirement is that I stay for at least a year to
receive the green card.it is not a scam as many of my old co-workers have gone
thru the system and received their green cards.as noted,I wish to do the same.I
do not wish to sell any of my properties here in Canada,nor my house.I have a
wife and 2 children who may wish to stay in Canada for about 6 months per year
or less depending on the tax implications.do I need to give up my house in bc,or
can I work and continue to work in the US,while my family stays here for a fair
bit of time?likewise does this change my residency status?
Is it possible to have a
family that spends most of its time in Canada and for me to live and work most
of my time in the US and still maintain my green card?Ideally,after receiving
the greencard,I would like to continue working in the US,and still have my house
here.Is there a way of doing this?thanks for your input.as the time gets
closer,I will be needing to hire a good taxman.
========================================================
david ingram replies:
Your question was by-passed because of the shear
number of questions. Your name was added to the list because that way,
your question will get answered eventually but I am about 200 questions behind
right now. However, by asking twice and seeing that the question has an
intereting twist to it.
Interestingly, the question I answeredd before this
also quoted Article IV of the US / Canada tax treaty which will govern your
taxes.
I am going to repeat ARTICLE IV here again.
and then comment after it:
Article IV - Fiscal Domicile - (it is the same number
in most treaties)
For
the purposes of this Convention, the term "resident of a Contracting State"
means any person who, under the law of that State, is liable to taxation therein
by reason of that person's domicile, residence, citizenship, place of
management, place of incorporation or any other criterion of a similar nature,
but in the case of an estate or trust, only to the extent that income derived by
the estate or trust is liable to tax in that State, either in its hands or in
the hands of its beneficiaries. For the purposes of this paragraph, a person who
is not a resident of Canada under this paragraph and who is a United States
citizen or alien admitted to the United States for permanent residence (a "green
card" holder) is a resident of the United States only if the individual has a
substantial presence, permanent home or habitual abode in the United states and
that individual's personal and economic relations are closer to the United
states than any other third State.
The term "resident" of a Contracting State is understood to include:
(a)
the Government of that State or a political subdivision or local authority
thereof or any agency or instrumentality of any such government, subdivision or
authority, and
(b) (i) A trust, organization or other arrangement
that is operated exclusively to administer or provide pension, retirement or
employee benefits, and
(ii) A not-for-profit
organization that was constituted in that State, and that is, by reason of its
nature as such, generally exempt from income taxation in that State.
2.
Where by reason of the provisions of paragraph 1 an individual is a resident of
both Contracting States, then his status shall be determined as follows:
(a)
he shall be deemed to be a resident of the Contracting State in which he has a
permanent home available to him. If he has a permanent home available to him in
both Contracting States, he shall be deemed to be a resident of the Contracting
State with which his personal and economic relations are closer (centre of vital
interests);
(b)
if the Contracting State in which he has his centre of vital interests cannot be
determined, or if he has not a permanent home available to him in either
Contracting State, he shall be deemed to be a resident of the Contracting State
in which he has an habitual abode;
(c)
if he has an habitual abode in both Contracting States or in neither of them, he
shall be deemed to be a resident of the Contracting State of which he is a
national;
(d) if he is a national of both Contracting States or of neither of
them, the competent authorities of the Contracting States shall settle the
question by mutual agreement.
In your case, because you will have a green card
and be spending significant tiome in the US, you will be considered a residnet
of the US for tax purposes. However, because you are also spending time in
Canada and your wife and children and properties are here, Canada will want to
tax you as well.
Presumably, you will rent or buy a place in
Florida.
Article 2 a) will note that you have a
permanent home available to you in both places. It wil lthen look at your
personal and economic interests. Becvause you have significant asets in
Canada and your family is here, that will settle it. The US will tax you
on your American Income and Canada will tax you on your World incoem including
the Florida income. Canada will allow you a foreign tax credit fo rthe
taxes you have paid to the US so there will NOT be double taxation but there
will be Canadian taxation.
On the other hand, if you rented (not sold) all
your Canadian Properties on a long term basis, and took your wife and children
with you, you would only be taxed in Canada on your Canadian rents and on your
world income in the US, AND, your wife and children would get green cards and
you could all get US citizenship which could / would be a tremendous asset to
your children in the future..
Goto www.centa.com and read the US / Canada Taxation
section in total.
Before you do any of this, you ned to sit down with
someone like myself. Your spouse should be part of the meeting as
well.
I do phone consultations as well. The kind of
consultation you need for thjis would run from $350 to $700 in person or by
phone.
And the answer is that if you sp[end enough time in
the US and make your home there more than six months of the year, you can
maintain your green card and your Canadian residence as well. However, you
will not qualify for BC medical becaus eyou have to sleep in BC for more than
183 days a year to qualify for BC medical and you have to be in teh US for more
than 183 days in a year to maintain your green card.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
[email protected]
www.centa.com www.david-ingram.com
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
[email protected]
www.centa.com 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
& the author and any and all non-contractual duties are expressly denied.
All readers should obtain formal advice from a competent financial, or real
estate planner or advisor & appropriately qualified legal practitioner, tax
or immigration specialist in connection with personal or business affairs such
as at www.centa.com. If you forward this
message, this disclaimer must be included."
This from "ask an income tax and immigration and bankruptcy expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor specialist consultant taxman Alaska, Alabama, Arkansas, Arizona,
California, Colorado, Connecticut,
Delaware, District of Columbia, Florida,
Garland, Georgia, Hawaii, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico,New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon.
Pennsylvania, Rhode Island, Rockwall,
South Carolina, South Dakota, Tennessee,
Texas, Utah, Vermont, Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas Taxman and Tax Guru and wizzard
wizard - Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
This from "ask an income tax and immigration and bankruptcy expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor specialist consultant taxman Alaska, Alabama, Arkansas, Arizona,
California, Colorado, Connecticut,
Delaware, District of Columbia, Florida,
Garland, Georgia, Hawaii, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico,New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon.
Pennsylvania, Rhode Island, Rockwall,
South Carolina, South Dakota, Tennessee,
Texas, Utah, Vermont, Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas Taxman and Tax Guru and wizzard
wizard - Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
----- Original Message -----From: [email protected]To: CENTAPEDESent: Saturday, January 03, 2004 12:26 AMSubject: Living in US, working in Canada - The problems of crossing the border while waiting for the resident alien / green card - expatriate - transborder immigrationQUESTION:
Hi, I am planning on marrying a US citizen and would like to continue to
work in Canada. I know I will have to apply for permission to work and
travel abroad as part of our application for PLR after we are married. What
we are wanting to know, is there a period of time when I wont be allowed to
travel back to Canada while waiting for applications to be processed? Also,
will I continue to do my own income tax filing or do we file together. I
have a business that generates a small amount of US income and have a US tax
number.
Thank you,
LXXXXXXX
-------------------------------------------------------------------------------------------------------------------david ingram replies:Your question worries me because it sounds like you may already inb an illegal position if you are working in the US with your Canadian Business.For instance, unless you have a proper visa, you cannot collect money in the USA although it may be legal for you to sell a/the Canadian service.The answer is that there is a period of time which can last from 2 to 6 months where you cannot leave the US without specific permission or if you are applying from Canada, cannot enter the US. Since you intend to work in Canada, it makes more sense to me that you apply from without and he can visit you during the time you can not cross the border.You could find it easier to apply as a fiancee because that paperwork can be processed in Vancouver, whereas if you get married first, you will have to go to Montreal for processing. (this only applies if you are applying from outside the USA.) However,this wouldrequire you to spend your no travel timeinteh USA..You should liklely come and talk to me individually with your fiancee so that the two of you know what the rules are and what the tax situation will be.After marriage, you will have the choice of filing a joint tax return or individual returns as married filing separately. If you are in a community property state like Washington, you will have to split your incomes and you will report half of his income on your MFS 1040 and he will report half of your income and half of his income on his MFS 1040. The reason that you might do that is that it means that you will not be held liable for his tax bill in the future and vice versa.David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
[email protected]
www.centa.com www.david-ingram.comDisclaimer: 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 & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
This from "ask an income tax and immigration and bankruptcy expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor specialist consultant taxman Alaska, Alabama, Arkansas, Arizona,
California, Colorado, Connecticut,
Delaware, District of Columbia, Florida,
Garland, Georgia, Hawaii, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico,New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon.
Pennsylvania, Rhode Island, Rockwall,
South Carolina, South Dakota, Tennessee,
Texas, Utah, Vermont, Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas Taxman and Tax Guru and wizzard
wizard -Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.You may find more answers at www.centa.comDavid Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.comDavid Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Saudi Arabia to Mexico to China or Chile - Cross border, dual citizen - out of country investments are all handled with competence & authority.
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