david ingram replies
There is NO - I repeat NO disadvantage to becoming a Canadian citizen in just about any circumstances.
There are big advantages if you wish to leave the country for prolonged periods of time.
However, if you do not want to be a citizen, you can maintain your Permanent resident of Canada status by
being in Canada for 24 months out of any 60 month period..
Since you can maintain your Ontario Health Plan by being in ONTARIO (not just Canada) for 153 days a year it means you can spend 5 months a year in Canada and seven months a year in the US and maintain both your OHIP and PR status. Note that you can NOT do this in any other province or territory. Every other province and territory requires you to be in that province or territory MORE than 183 days a year to maintain your health coverage,.
If you have lived in Canada for 20 years, you can take your OAS with you anywhere in the world. You have to be in Canada more than six months a year however, to qualify for your OAS supplement.
You can take any CPP you are receiving with you no matter where you live.
This older question will help as well.
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QUESTION: My wife and I have become permanent residents of Canada. We are U.S. citizens considering citizenship in Canada because it has become our home.
What are tax benefits/drawbacks to becoming a Canada citizen? IRS is inescapable as an American you are deemed American no matter where you reside. So I guess question is:
What tax liabilities/benefits come with dual citizenship versus benefits/liabilities of U.S. citizen as permanent resident of Canada?
Have had no luck finding answer online...so really appreciate your help.
Cheers,
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david ingram replies:
There are no tax benefits or negatives to becoming a Canadian citizen that I can think of after 43 years in this business. If you leave Canada as a citizen and return to the US or move to France or Australia , you do not have to file a Canadian return any more to report your world income, although if you have investments here and a very low income, you may want to file a return under Section 217 to claim larger exemptions and reduce the non-resident withholding tax on dividends, interest and pensions. (these differ according to the country you go to by the way).
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There 'are' great benefits in that you can go back to the US without fear of losing your Canadian status because you are gone too long.
You can vote.
You qualify easier for the provincial medical plan if you leave and want to come back.
You can find my treatise on dual citizenship at www.centa.com - click on the Oct 93 Newsletter - in the top left hand box.
Then find out about what yo have to do as a US citizen to keep the IRS happy by clicking and reading the Oct 1995 newsletter. Note that form 8891 is now in use for the RRSP reporting so I better make an amendment to that one.
Last, read the 'US Canada Taxation' section in the second box down on the right hand side.
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You can find a sample 1040NR tax question about selling real estate and
my suggested price list at
http://www.centa.com/CEN-TAPEDE/archive/Week-of-Mon-20080818/004120.html
david ingram
