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How silly of me to have overlooked this point - I was too busy
dealing with the no-tax to Canada issues.
Donald Cameron (former Canadian Consul in Seattle and other
points AND the person I consider the "dean" of Canadian
Immigration consultants) points out that the PR spouse of a
Canadian citizen is credited with "time in Canada" when living
with a Canadian Citizen spouse outside of Canada.
Therefore my five months in Canada comment below was not
necessary because the wife is a Dual citizen. However, if the
examples were two Amercians who had received their PR cards, then
the comment would be valid. They would keep their PR cards AND
be free of Canadian Income tax on World income if they spent five
months a year in Canada and 7 months in the States. They "would"
have to pay tax on any money earned in Canada but could solve
most of that problem by keeping any deposits in the US. Thanks
again Don.
-----Original Message-----
From: Donald Cameron [mailto:[email protected]]
Sent: Thursday, April 22, 2004 10:10 AM
To: [email protected]
Subject: Re: 2nd Home in Canada Michigan Ontario
commuters dual - citizen PR card - ask a West Vancouver BC Canada
income tax and immigration expert planner preparer consultant
specialist
David,
With regard to your paragraph 2 below, "Spouse 1" (the US
citizen with the PR visa) does not need to be in Canada to meet
the PR residency obligation. Spouse 1 is deemed to be residing
in Canada as long as he or she is outside of Canada accompanying
his or her Canadian citizen common-law partner.
Regards,
Don
----- Original Message -----
From: [email protected]
To: CENTAPEDE
Sent: Thursday, April 22, 2004 12:33 AM
Subject: 2nd Home in Canada Michigan Ontario
commuters dual;citizen PR card - ask a West Vancouver BC Canada
income tax and immigration expert planner preparer consultant
specialist
Dear Mr. Ingram:
My common-law spouse and I need some financial advice in
connection with a
2nd home in Ontario. Here is the situation:
Spouse 1: US. citizen who has been approved for permanent
residence in
Canada, but who has not yet "landed".resides in Michigan.
Assets: house
(in his name only), 401k, Roth IRA, savings (held jointly with
Spouse
2.under 1 million). Intention is to retain current job in
Michigan.
Spouse 2: Dual U.S.-Canadian citizen.resides in Michigan with
no current
Canadian tax obligations. Assets: IRA (not old enough to
withdraw funds),
savings (held jointly with Spouse 1). No current income (i.e.
not employed
and does not plan to be, either in U.S. or Canada).
We are buying a house just across the border in the Windsor,
Ontario area
with the intention of living some of the time in the Canadian
home and most
of the time in the U.S. home. (Any advantage of this house
being
registered in one or the other's name as opposed to both?) The
idea is to
see how we like living in Canada and, if we do, to eventually
sell the U.S.
residence.
Taking into account the fact that Canadian immigration rules
allow a
permanent resident to maintain his/her status while outside the
country, if
accompanying a Canadian citizen spouse, we need advice on what
would make
the most sense tax-wise to do at this time.
Should Spouse 1 maintain the Michigan home as his primary
residence and
regard the Canadian address as a second (vacation) home? He
would thereby,
I assume, avoid Canadian income taxes altogether. He would
then also
maintain his Michigan driver's license and auto insurance. The
only thing I
could see being problematic is commuting to work from Canada
(actually,
re-entering Canada after work) with a Canadian PR card, a
Michigan driver's
license and a Michigan-plated car. I have read that Canadian
PRs are not
allowed to drive U.S.-plated cars in Canada (out of concern
that they are
being brought into the country without being officially
imported). Spouse 1
would get a NEXUS card to allow for fast commuting, but I don't
know if that
would eliminate the possibility of problems at the border.
Would Spouse 2 be able to reside tax-free in either country,
assuming no
income was generated? At the moment, the interest on savings
is under
Spouse 1's tax ID number and reported by him. If that would be
a problem in
relation to Canadian taxes, all the savings could easily be put
solely in
Spouse 1's name.
Thank you!
XXXXXXXXX
_________________________________________________________________
david ingram replies;
I cannot believe that I am actually answering this question on
April 22.
I am just too busy.
However, your question got my interest because it is so typical
and yet only applies to a few people.
1. If you get a PR card, you have to deal with the car. You
cannot be a PR in Canada with a residence and drive a car in
Canada that has not been imported or at least had the Canadian
taxes paid.
As it is, you can import the car (assuming you have had it for
six months) as part of your settlers affects for coming to
Canada.
AFTER you have imported it, you are welcome to take it back to
Michigan. You do NOT even have to register it in Ontario if you
keep your Michigan residence, live in it most of the time and
continue to work in Michigan. However, if stopped by Canadian
Customs or the OPP or RCMP or Windsor City police and they find
out you have a house in Canada AND a PR card, you will be able to
show them that the car has been cleared by Canada customs and has
not been smuggled into the country and is not being driven
illegally.
2. If you spend seven months a year in Michigan and five
months in Canada, you will have 25 months in Canada which will
keep your PR card alive and keep you from having to pay Canadian
Income tax on your US earnings.
Keep all your savings, securities accounts, etc in the USA
until you make up your mind that you want to live in Canada
permanently.
Goto www.centa.com and read the US/Canada Taxation section.
Anything more, you need a phone consultation. However, if it
makes you feel better, you are our typical client, not an anomaly
that we have to figure out.
Answers to this and other similar questions can be obtained
free on Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of
Cartier Partners and I will be hosting an INFOMERCIAL but LIVE
talk show called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on
the internet at
www.600AM.com
Local phone calls to (604) 280-0600 - There is a provincial
long distance line as well and old shows are archived at the
site.
This from ask an income tax immigration planning and bankruptcy
expert consultant guru or preparer from www.centa.com or
www.jurock.com or www.featureweb.com. Canadian David Ingram deals
daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling
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GB, American and Canadian and Mexican and any of the 43 states
with state tax returns, etc.
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Disclaimer: This question has been answered without detailed
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