Moving back to Canada after living 6 years in Houston,

This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
Dear Mr. Ingram,
 
We would like some advice.  Here is a little background.  My husband and I have been living in Houston, Texas since 1997.  He was downsized.  We are seriously considering returning to Canada.  We have Roth Ira's, a rollover IRA and a 401 K.  My husband will also be receiving a small severance package.  While we have many questions, our main question is should be a resident of Canada or the US on December 31?
 
We would like to minimize, like everyone else, our tax burden.  Any help you can give us on this subject would be greatly appreciated.  Could you also tell us your fees?
 
Thank you very much.
 
Regards,
AXXXXXXXX
713-46X-XXXX
======================================
david ingram replies:
You are not alone.  I have a client staying at my house right now while he finds an apartment in Vancouver to move his wife into from San Francisco.  In this case, the main reason for returning to Canada is that after years of waiting for green card status so that she could work, his loss of a job has meant that they have to start over and she is not going to put up with that.
Your tax return would be easier if you moved on Dec 31st. However, in the total scheme of things, it will not matter.  You will be taxable in the US on the money earned in the US and you will be taxable in Canada on the money earned in Canada.  Depending upon itemized deductions, we "might" add the  Canadian income to the US and claim a foreign tax credit because it allows you to claim a full standard deduction in a dual status year (a year you move into or out of the United States).
Your taxes would be lower if you were to move on say Jan 31st and get the severance package in the US in January.  Than you would NOT be adding it to the rest of 2003's income at your highest tax rate.  As long as you get it before yo move back, Canada has no claim on the severance.
My fees generally run around $350/hour (Cdn funds) for US / Canada Tax work. I have 34 years as a US/Canadian tax consultant and am backed up by five other full time people whose main function is to look after US / Canadian Tax returns.
You will get more by going to www.centa.com and clicking on [US / Canada Taxation].  
Your moving expenses back to Canada are NOT deductible.
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 
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"
 
This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian 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, Houston, Dallas, Richardson Texas, US, UK, GB, and any of the 43 states with state tax returns, etc.
   
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/2c543a25/attachment.htm
---------------------- multipart/alternative attachment--

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20031020000363.html

No trackback comments for this entry.

0 comments