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Hello:
I would like your opinion on my situation. Here are the facts:
1.. My wife and I are Canadian Citizens, have green cards, and just =
recently moved from Seattle, WA to Boston, Ma=20
2.. During frequent trips to Montreal Quebec, my wife thought it would =
be a good idea to invest in property in Montreal. We bought a home with =
the intent to rent out but ended up spending many weekends there.=20
3.. Because I am always on the road in the US, I would meet her in =
Montreal on the weekends with the kids.=20
4.. My wife now spends no more time in Boston, full-time in Montreal.=20
5.. I come to Montreal for the long weekends (in on Thursday night, =
out on Monday morning)=20
6.. I earn all my income in the US.=20
7.. Just recently my father-in-law offered the sale of his Ski Chalet =
to me for a very attractive price in Mt.Tremblant, Quebec. I accepted =
and arranged for a mortgage with a Canadian Bank (who financed the home =
in Montreal as well). We do intend on renting out the Chalet from time =
to time.=20
8.. We have not applied for Canadian/Quebec Benefits (ie. Medicare, =
Family allowance, etc.). I still have my car plated in the US (although =
it physically sits in Montreal) so I have not registered my vehicle =
either.=20
9.. I contribute annually to a 401K in the US and have minimal RRSPs =
still in Canada=20
10.. I do not own stock investments outside my 401K=20
So my dilemma is this:
1.. Preparing to pay taxes to both the US and Canada (as I believe I =
will be deemed a Canadian Resident due to the time my wife and kids =
spend in Canada). I need help filing my returns and minimizing my tax =
liabilities via tax shelters of all types. What =91loopholes=92/Tax =
strategies can I look into?=20
2.. I was thinking of applying for US citizenship so I don=92t lose my =
US residency because I am also deemed a resident of Canada. I really =
don=92t want to do this, but feel I am exposing myself to US scrutiny if =
I hold residency in both countries. My wife was going to give up her =
Green Card but we don=92t really know if she has to since she has no =
income.=20
A Can you help me with my US/Canadian Tax returns?
B Can you advise me on tax strategies if applicable
C Can you advise me on residency issues outlined above?
Thanks,
PXXXXXXXXXX0
(617) 901-
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david ingram replies:
A - Your situation is a common one in this office. Today alone, we =
filed returns from Calgary, Lethbridge, Vancouver, Seattle, Florida, =
Arizona, well you get the idea. The reason today was so busy was the =
Oct 15th deadline for filing details of Canadian RRSP's for US citizens =
or US residents.
B - Tax strategies are easy - applying them or making them fit your life =
is another matter. the answer is That I can advise you but it is up to =
you to follow through.
C - I can advise you on residency issues. I do not know where or how =
you got my name and email address but if you go to www.centa.com and =
click on [Residence], you will get most (if not all) of your answer.
A couple of thinks to worry about.=20
1. If your wife has been in the country a significant amount of time =
with the intention of staying in Montreal, the car is subject to seizure =
if not imported.
2. If you are going to be paying tax in Canada, stop contributing to =
your 401(K) or any other US IRA or 401 plan. Canada does not recognize =
the contributions as a deduction so you will paying Canadian tax on its =
value going in and US tax on its value coming out.
3. Keeping your house in Boston and getting your wife and family back =
there pretty quick would likely be advisable. Get your US citizenships =
and then move to Montreal. If your wife does NOT want to do that, you =
should have applied for permission to leave the country BEFORE she left =
to keep her green card alive. I take it that if you have children, they =
are too young to be in school. =20
If your wife does not care about ever living in the US again, you should =
get yours for the purposes of your job and ease of crossing the border. =
If you gave up your house in Boston right now for instance, you would =
stand the chance of having a US INS or Homeland Security officer yanking =
your green card with no residence in the USA.
It is possible to convert it to a commuter green card. They are very =
rare but it can be done although it usually applies to a person who =
lives in Canada and commutes to a US job daily.
If you reply, please reply to all - I am in the process of moving my =
office and I do not know what email I will be using as a full time =
address.
Hope this helps
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321=20
New email to [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 =
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 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"
=20
This from "ask an income tax and immigration expert" from www.centa.com =
or www.jurock.com or www.featureweb.com. David Ingram deals daily with =
tax returns dealing with:
multi jurisdictional cross and trans border expatriate problems for the =
United States, Canada, Mexico, Great Britain, the 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.
=20
=20
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