QUESTION: My wife and I are US citizens and will be moving to Canada in the summer. We have a number of IRAs that we would like to rollover, as well as create a SEP IRA for her consulting business. My question is, will we be able to manage the IRAs from Canada? We have an account at Charles Schwab and they said that we can, however, all transactions will need to be made over the phone and our mutual fund options will be limited to a small number of fund families. First of all, does this ring true to you? If so, are you aware of any other brokers in the US that would work with Canadian residents in this way? --------------------------------------------------------------------------- david ingram replies: They are few and far between but Dan Walkow and Darrel Thompson are two people who 'can' handle your cross border IRA's with few restrictions that I know of. The problem is in the licencing. To sell you a security or mutual fund when you are a resident of a province, the person selling it to you AND his or her company MUST BE licenced in that province. By the same token, A Canadian AND his company must be licenced in the state where you live to deal with your account Blackmont Securities and Seabank Capital have spent millions (not thousands) getting those licences for the companies. The individuals have gone to great effort to do the same for themselves. Dan and Don's contact information is contained in the older Q & A below. --------------------------------------------- My_question_is: Applicable to both US and Canada Subject: Canadian, US Perm Res, working in Canada Expert: taxman at centa.com Date: Monday January 14, 2008 Time: 05:48 PM -0000 QUESTION: hello I am a Canadian citizen with US resident status, working full time in Canada. 1. Will my only tax paid, to both countries be paid to Canada through payroll tax? 2. Do I have to file a US tax return? 3. Am I eligable to pay a reduced tax rate to Canada? 4. Investment company in Canada is refusing to allow me to set up a payroll RRSP deduction in which I am matched by the company I work for. Can they do this? 5. If I am required to cancel my OHIP health coverage in Canada, am I entitled to a tax reduction that would normally be designated to that coverage? Thanks ----------------------------------------------------- david ingram replies; I assume that you are living in Detroit and working in Windsor or Living in Bekkuinbgham and working in Vancouver or something to that effect. If that is so, you can participate in a company pension plan but matched RRSP contributions are difficult because the financial company handling it for your employer is not licenced to sell to or deal with a non-resident of Canada . 1. You will pay Canadian Income Tax, CPP and EI. You will then report the same inocome to the USA on a 1040 and claim credit for the taxes paid to Canada on US form 1116. It is unlikely that you will owe the US more on the wages but you might if you have other investments in the USA. 2. YES 3. NO 4. As explained, the company is not licenced to deal with you as a non-resident. I will give the names of two people who can work with your company to set it up for you. 5. NO - You have to sleep in Ontario more than 153 days a year to qualify for OHIP. You could live in Ontario for 155 days and the US for 210 days and keep OHIP AND your US resident alien (green) card alive. This gives you the names of two people who can solve your RRSP problem. Two ethical people who specialize in selling securities, RRSPs, etc., to US citizens or green card holders in Canada or Canadians in the US are: Mr Darrell Thompson Blackmont Securities Toronto Local (416) 874-8007 LD (866) 775-7704 www.blackmont.com AND Dan Walkow Seabank Financial White Rock Local (604) 541-9952 L D (866) 541-9952 www.seabankcapital.com __ These two individuals and their companies have gone to the effort to get themselves registered just about everywhere so they can deal with a Canadian in Florida or California or Nevada, or an American in Ontario or BC., etc. ____________________________________ Note that because of their specialty, they tend to deal with accounts in excess of $200,000 However, both parties would welcome an exploratory call. ------------ david ingram wrote: --------------------------------------------------------------------------------------------------------------- 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: 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 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) email to taxman at centa.com 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 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 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, Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec, Moncton, Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego, Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa, Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham, Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence, Houston, Albany, Framingham, Cambridge, London, Paris, Prince George, Prince Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon, Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers, Berlin, Hamburg, Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing, Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer, Olds, Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie, Davidson, Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh, Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo, Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto, Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish, Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton, Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis, Centralia, Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears, Truro, Charlottetown, Summerside, Niagara Falls, income trust, Income Tax Treaty Convention international non-resident cross border income tax help estate family trust assistance expert preparation & immigration consultant david ingram, income trusts experts on rentals mutual funds RRSP RESP IRA 401(K) & divorce preparer preparers consultants Income Tax Convention Treaty 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 - consultant - expert - advisor -advisors consultants - gurus - Paris Prague Moscow Berlin Lima Rio de Janeiro, Santaigo Zimbabwe Income Tax Treaty Convention -------------------------------------------------------------------------------- No virus found in this incoming message. 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