UK National Health and Canadian Pensions for new Canadian -
10 years worth of National
Insurance paid with UK and we are planning to move to
Toronto permanently. What do you recommend we do ie.
continue to pay UK National Insurance or stop paying
it?
What is the pension system in Canada like? What should
we know before we get there? We are both 40 years old
and kind of late in our pension arrangements...
We plan to buy a house in Toronto in the range of
$250,000 with a down payment of %10 to %15. What kind
of salary range would they require for that?
I work for a US cruise company and my salary is
tax-free. Will I have to pay tax once I move to
toronto? I will not be spending more than 4 months a
year for the first 2 years in Toronto.
Thank you kindly for your answers
---------------------------------------------------------------------
david ingram replies:
Canada has two government pensions:
The Canada Penison plan covers workers who put in approxiamately 5% of their income up to $40,000 if an employee and 10% of their net income if self employed. One can start withdrawing it at age 60 at the earliest of age 70 at the latest. To get a full penion, one has to contribute at the maximum for 40 years. Therefore, if you put in until age 70, the most you would receive is 75% of the maximum pension.
We also have the Old Age Security pension which one receives for being alive and being a resident of Canada. It can start at age 65 and also requires 40 years ofr esidence in Canada. In your case, you would receive 25/40's of the pension . It also has a means test attached and some of it starts getting claweed back at about $60,000 of income and it disappears entirely at about $85,000 of income in 2006 dollars. Those figures will be wite different 25 years from now.
You can no longer pay into the UK National Insurance as a resident of Canada.
There are all sorts of possibilities depending upon the prevailing interest rate and whehther the purchase qualifies for CMHC financinag and gurantees to teh lender.. In general, you wopuld need about $55 to 60,000 of income to justify a new purchase as described.
Once you become a resident of Canada with a home available to you, you can expect that Canada will tax your cruise ship income. Goto www.centa.com andread the US/Canda taxation section in the seconbd box down on the right hand side. There are lots of examples there showing how Canada taxes its residents and citizens. To escape this, you would have to have a full blown home in another country where you spent more than 183 days of the year.
-----------------------------------------------------------------------------------------------------------------
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Insurance paid with UK and we are planning to move to
Toronto permanently. What do you recommend we do ie.
continue to pay UK National Insurance or stop paying
it?
What is the pension system in Canada like? What should
we know before we get there? We are both 40 years old
and kind of late in our pension arrangements...
We plan to buy a house in Toronto in the range of
$250,000 with a down payment of %10 to %15. What kind
of salary range would they require for that?
I work for a US cruise company and my salary is
tax-free. Will I have to pay tax once I move to
toronto? I will not be spending more than 4 months a
year for the first 2 years in Toronto.
Thank you kindly for your answers
---------------------------------------------------------------------
david ingram replies:
Canada has two government pensions:
The Canada Penison plan covers workers who put in approxiamately 5% of their income up to $40,000 if an employee and 10% of their net income if self employed. One can start withdrawing it at age 60 at the earliest of age 70 at the latest. To get a full penion, one has to contribute at the maximum for 40 years. Therefore, if you put in until age 70, the most you would receive is 75% of the maximum pension.
We also have the Old Age Security pension which one receives for being alive and being a resident of Canada. It can start at age 65 and also requires 40 years ofr esidence in Canada. In your case, you would receive 25/40's of the pension . It also has a means test attached and some of it starts getting claweed back at about $60,000 of income and it disappears entirely at about $85,000 of income in 2006 dollars. Those figures will be wite different 25 years from now.
You can no longer pay into the UK National Insurance as a resident of Canada.
There are all sorts of possibilities depending upon the prevailing interest rate and whehther the purchase qualifies for CMHC financinag and gurantees to teh lender.. In general, you wopuld need about $55 to 60,000 of income to justify a new purchase as described.
Once you become a resident of Canada with a home available to you, you can expect that Canada will tax your cruise ship income. Goto www.centa.com andread the US/Canda taxation section in the seconbd box down on the right hand side. There are lots of examples there showing how Canada taxes its residents and citizens. To escape this, you would have to have a full blown home in another country where you spent more than 183 days of the year.
-----------------------------------------------------------------------------------------------------------------
david ingram wrote:
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office)
$1,600 would be for two people with income from two countries
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 family estate trust trusts income tax convention treaty
---------------------------------------------------------------------------------------------------------------
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office)
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. If you forward this message,
this disclaimer must be included."
Be ALERT, the world needs more
"lerts"
David Ingram gives expert income
tax & immigration help to non-resident Americans & Canadians from
New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
authority.
Phone consultations are $400 for 15 minutes to 50
minutes (professional hour). Please note that GST is added if product remains in
Canada or a phone consultation is in Canada.
This is not intended to be definitive but in
general I am quoting $800 to $2,800 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
$1,600 would be for two people with income from two countries
$2,800 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 two or three slips and no capital
gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely
$450
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 $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00
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.
This from "ask an income trusts tax and immigration expert"
from www.centa.com or www.jurock.com or 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, Saudi Arabia, Thailand,
Indonesia, 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, and any of the 43 states with state tax
returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland,
Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax
Immigration Wizard Antarctica
Rwanda Guru Consultant Specialist Section 216(4) 216(1) NR6
NR-6 NR 6 Non-Resident Real Estate tax specialist expert
preparer expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border
transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income
Tax Convention
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 family estate trust trusts income tax convention treaty
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Convention
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