I moved my family from Canada to US in 2002 due to a job transfer. Back in the mid-oughts this forum was very valuable to me. Haven't needed to visit in some years, but now we are moving back again, mostly for family reasons (aging parents). My employer, a US based multinational, has agreed to transfer me to their Canadian payroll, however unlike our move down here, this won't be a paid corporate move, so we're doing it on the cheap (downsizing, U-Haul).
Any advice on things we ought to do before departure to assist with taxes and personal finances would be greatly appreciated. We have neglected RRSPs in Canada, I have a 401(K) with my employer here. We acquired US citizenship some years ago, so will be having to cope with US requirements for expats too.
Returning to Canada as Dual Citizens after 10+ Years in US
Moderator: Mark T Serbinski CA CPA
Well, you won't have to deal with "expat" issues unless you give up citizenship, which I don't recommend (others do).
Some basic things are to ensure that any US-sourced income due to you is paid to you before you re-establish ties in Canada, or they will be taxed in Canada.
If you have any losing positions in stocks you should trade them before leaving. If you have mutual funds outside your 401(k)/IRA, you will need to sell them. Stocks should be moved to a Cdn broker.
RRSP: you may want to consider collapsing your RRSP before going back, paying the 25% tax (and perhaps a little in US as well) rather than the taxrate you will pay in Canada. That is not a hard set rule.
401(k)/IRA: you could consider converting some of your 401(k)/IRA to Roths before returning (although this may be difficult given that you are transferring), paying the tax in US now afor future untaed gains/income.
Some basic things are to ensure that any US-sourced income due to you is paid to you before you re-establish ties in Canada, or they will be taxed in Canada.
If you have any losing positions in stocks you should trade them before leaving. If you have mutual funds outside your 401(k)/IRA, you will need to sell them. Stocks should be moved to a Cdn broker.
RRSP: you may want to consider collapsing your RRSP before going back, paying the 25% tax (and perhaps a little in US as well) rather than the taxrate you will pay in Canada. That is not a hard set rule.
401(k)/IRA: you could consider converting some of your 401(k)/IRA to Roths before returning (although this may be difficult given that you are transferring), paying the tax in US now afor future untaed gains/income.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
You will become a Cdn tax resident the day you can occupy a home.
of course, any work done in Canada for the Cdn company will be Cdn-sourced and taxable in Canada anyways, regardless of where you actually live for that/those week9s).
All your income will still be taxed by US due to citizenship.
On the matter of transferring your broker or selling mutual funds, you have no issues as long as you do not buy or swap funds. Holding of selling will not get anyone in trouble in the short term.
of course, any work done in Canada for the Cdn company will be Cdn-sourced and taxable in Canada anyways, regardless of where you actually live for that/those week9s).
All your income will still be taxed by US due to citizenship.
On the matter of transferring your broker or selling mutual funds, you have no issues as long as you do not buy or swap funds. Holding of selling will not get anyone in trouble in the short term.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing