CAN Couple ready to transition to green cards in USA

Keeks2915 · Post by **Keeks2915** » Fri Dec 12, 2014 1:30 am

Thanks in advance for advice!

The situation:

Canadian couple (46/47)currently live in Ontario own Canadian Corporation and USA Corporation. Significant income and real estate holdings.(empty nesters)

Possess a valid USA L1a work visa and have possessed valid work visas for 15 years. Now looking into converting work visa into green cards.

We own a home in Florida and plan to spend most of the year there and work as little as possible. (very fortunate) For this reason we are looking into the green cards to avoid the ongoing two year renewals of my l1a as. I wind down my companies.

I currently pay corporate and personal taxes in both countries and of course canada nicks me for world wide income differential on my USA earned income. Ideally I would like to pay tax in one country only and obviously the lower country while eliminating duplicate accounting fees in both countries and getting my last bill from an immigration attorney (wheh!)

Ideally, I am trying to determine if it makes sense to do the permanent residence thing in USA for the obvious tax advantages (golf/ weather) and simply spend time at our Canadian cottage when the weather is nice in. Ontario.

I am aware generally of the Canadian "departure tax" issues but don't want to make a mistake cutting off my nose to spite my face, surrendering OHIP coverage etc...

nelsona · Post by **nelsona** » Fri Dec 12, 2014 6:50 am

How have you been filing in US so far? 1040NR or 1040.
If you have been filing 1040NR, then be becoming resident, you will kno whave to deal with foreign investment reporting.
If you have been filing 1040, hopefully you have been keeping up with said foreign reporting over the years. If you have qualified for 1040 for several years, then I'm surprised CRA has not deemed you non-resident already.

When becoming non-resident of Canada. it is best to get rid of TFSA, and you will want to wind-down or sell Cdn corporation. Be prepared to move any non-registered investments to US. Those you cannot sell should be liquidated or moved into your registered accounts.

How is your Medicare situation? make sure you qualify with 40 quarters of SS contributions, if not already, by 65.

Keeks2915 · Post by **Keeks2915** » Fri Dec 12, 2014 1:42 pm

Yes 1040NR. As I document majority of my time in Canada, with bridge receipts etc.

To keep L1a extending on renewals.

Perhaps I can contract you to handle my situation advice wise.

Just need to understand how to reach you and by the way I read 20 pages on here and I am impressed by your knowledge and willingness to share it with us cognitive misers... ; )

Thanks again!!!

Keeks2915 · Post by **Keeks2915** » Fri Dec 12, 2014 1:48 pm

Forgot one little chestnut.

I have a valued employee in Canada I plan to "hand off" Canadian company to in whatever way is best tax wise.

He would receive company no $ upfront and just pay me 45% gross for an extended period of time.

nelsona · Post by **nelsona** » Fri Dec 12, 2014 2:35 pm

I'm not available at this time.

nelsona · Post by **nelsona** » Fri Dec 12, 2014 2:36 pm

But thanks for the kind words.

There are a couple of other posters who are more adept at corportate matters, they may post some advice for selloff.