2nd Home in Canada Michigan Ontario commuters dual;

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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
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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:
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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 & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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