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Thanks David, you sure are a very interesting person and yes will get in =
touch with you to ensure that you have not =93wasted=94 your time once I =
am sure I am not being foolish financially to move to Canada
=20
Am I correct in assuming the following. That being a single person, =
living right now in California but if I moved to Canada on a resident =
visa, I would be a non-resident US citizen with residency in Canada and =
on an interest income of $ 25000 approx UDS. I will pay the following =
tax:
=20
For British Columbia: $ USD 4500
US- even if I am a non resident since I will be physically living in =
Canada-it will be $ USD 2768?? Or will they be a lower non resident tax
=20
You also mentioned that BC has a medical insurance premium-any idea how =
much that is and what it covers or where I can look it up?=20
Sales tax is 7.5% I thought it was higher since we pay more than that in =
California? Someone mentioned it was almost 17% -guess they were wrong
=20
So David, in your personal (not professional opinion) what is the flaw =
in my theory of moving to Canada-BC and not to some other part of US for =
reasons of medical insurance free or so I think and a better exchange =
rate?? Is there anything I should think about or look into in addition =
to the above so that I do not make a costly mistake.
=20
Thank you so very much for your sage advice and be assured I will =
consult you with your fee once I get the prelim stuff taken care of
=20
Take care and all the best
=20
S S
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david ingram replies:
You can find out everythig you want to know about BC medical =
at:http://www.hlth.gov.bc.ca/msp/infoben/premium.html
The premium for a single person is $54.00 per month.
I also have been chastised for failing to mention Canada's GST of 7 Per =
Cent on most hard goods and some services.
It does NOT apply to food, medical, financial services, rents, used =
cars from a private dealer, a usewd house and many other items.
It is my opinion that most people pay it on about a third of their =
budget and the effective rate is more like 2 1/2 percent of everything. =
Many items are also exempt from the 7.5% provincial sales tax as well. =
Forinstance, you pay it on legal fees but do not pay it on accounting =
fees.
If you are in Canada, the most tax you would ever pay to the US would be =
10% on interest (15% on dividends).
In your case the tax would be $2299 using 2002 tax rates and you would =
receive credit for every cent of that against your Canadian and BC tax.
I can only speculate so far on these matters. I typically charge $600 =
Canadian for "moving to Canada" consultations.
Phone consultations can be arranged for $200.00 US per hour with a one =
hour minumn.
What i am really intrigued with is your method of coming to Canada. =
Although an American can move with impunity to any of the 50 states, it =
is not possible to just "pack up and move here". =20
You will need a valid status of some sort or a Canadian family member to =
sponsor you.
=20
-----Original Message-----
From: David Ingram [mailto:[email protected]]=20
Sent: Tuesday, June 10, 2003 9:35 AM
To: [email protected]
Subject: What is the difference in tax between US and Canada on $25,000 =
US? Jurock.com 'Ask an Expert': A Question for You on Monday, June 9, =
2003 at 16:59:53
My question is: Applicable to both US and Canada
QUESTION: I am a US citizen-single, considering migrating to Canada. I =
intend living off interest income only. If the investments were in US =
and I recd interest in USD -approx 25000. Can you tell me what would be =
my approximate Canadian and US tax liability? I need to figure out if it =
makes sense to migrate financially
-------------------------------------------------------------------------=
--
David Ingram Replies:
Tax rates have changed so much that it is a very difficult question to =
answer. I have used the 2002 rates in my computer system and have made =
no attempt to adjust for the new tax bill, mainly because it will not =
affect you as much as a married person with three kids and stock market =
investments.
Also, I do not know what state you are in.
So - On $25,000, the US Federal Tax is $ 2,299
If you lived in Washington, Florida, Alaska, Texas, Nevada, Wyoming or =
South Dakota, there is no State tax, so your bill would be just $2,299
However, if you lived in different states, state amounts would be
Federal 2299 Total Canadian =
dollar equivalent
California 469 2768 =
3792
New York 787 3086 =
4227
Arizona 570 2869 =
3930
Minnesota 966 3265 =
4473
Georgia 1013 3312 =
4537
Illinois 690 2989 =
4094
Massachusetts 1143 3442 =
4715
Indiana 816 3115 =
4267
Oregon 1575 3874 =
5307
Montana 942 3241 =
4440
Hawaii 1316 3615 =
4952
Pennsylvania 700 2999 =
4108
Utah 1062 3361 =
4604
And now for the Drum roll - Your $25,000 transfers at 1.37 to $34,250 in =
Canadian Dollars.
This translates to 4413 Canadian Federal Taxes plus 1675 =
British Columbia tax in Canadian Dollars for a total of about 6088 =
Canadian Dollars which at current exchange rates will be somewhere =
around $4,500.00 US.=20
This Canadian Tax is less than the tax in Georgia, Mass., Oregon, Hawaii =
and Utah.
Other Canadian provinces will have different rates. British Columbia is =
close to being the lowest tax.
This does not take into account difference in cost of living, medical =
premiums, provincial or state sales taxes, etc.
For instance Washington State has no State Income Tax but Oregon with =
the High State Income Tax has no state sales tax.
BC has a medical insurance premium plus a 7.5% sales tax. Alberta with =
a similar provincial income tax rate has NO medical premium and NO =
provincial sales tax.
Property taxes, rents and other services are generally cheaper in BC (in =
adjusted dollars) than those same items in California or New York.
Hope this helps and remember, we do this for a living. By the way, I =
enjoyed this question.
david ingram
david ingram - [email protected] <mailto:[email protected]>
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - (604) 913-9123 www.centa.com <http://www.centa.com>
Cell is (604) 657-8451 (10 AM to 10 PM seven days a week)
US / CANADA / MEXICO
Working Visa and Income Tax Specialists
Be ALERT, the world needs more "lerts"
HTTP_REFERER: =
http://www2.jurock.com/askexpert/ask.asp?aid=3D121&cid=3D63
REMOTE_ADDR: 68.5.230.138
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