Any Advantages to Dual Citizenship (taxwise)
Moderator: Mark T Serbinski CA CPA
Any Advantages to Dual Citizenship (taxwise)
I have dual citizenship but have lived in Canada my almost whole life.
With these new FBAR penalities I am thinking of just getting my US taxes up to date and then renouncing my US citizenship.
Is there any tax advantages in the future of keeping US citizenship?
With these new FBAR penalities I am thinking of just getting my US taxes up to date and then renouncing my US citizenship.
Is there any tax advantages in the future of keeping US citizenship?
None tax-wise. If you would want to retire in US, you won't be able to, but without medical coverage, you weren't going to do that anyways.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
But, really once you get all your tax returns in order, what;s the point of renouncing; you just copy your returns from year to year.
oh, there is one advantage, if you have kids that are US citzizens, IRS gives you $1000 per year each, just for filing.
oh, there is one advantage, if you have kids that are US citzizens, IRS gives you $1000 per year each, just for filing.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]But, really once you get all your tax returns in order, what;s the point of renouncing; you just copy your returns from year to year.
oh, there is one advantage, if you have kids that are US citzizens, IRS gives you $1000 per year each, just for filing.[/quote]
That's about 40 more years of filing duplicate tax returns. I always get an accountant to do it as well so I have to pay them. I'm also worried about them taxing my RRSP savings....if they don't take a cut now they could change the rules at any time in the future.
oh, there is one advantage, if you have kids that are US citzizens, IRS gives you $1000 per year each, just for filing.[/quote]
That's about 40 more years of filing duplicate tax returns. I always get an accountant to do it as well so I have to pay them. I'm also worried about them taxing my RRSP savings....if they don't take a cut now they could change the rules at any time in the future.
Oh, and if you are worried about US changing rules on taxes, maybe you should also be worried that they change their rules on former citizens.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
[quote="nelsona"]The IRS' "cut" on any Cdn-source income will always be less than CRA's cut, so I wouldn't worry about that.[/quote]
I am less worried about my tax forms but more worried about my Company savings plan and my RRSP's. It's all from Canadian Income but I haven't yet filed out FBAR paperwork yet. I'm stressed out on how much of my savings they may take.
I am less worried about my tax forms but more worried about my Company savings plan and my RRSP's. It's all from Canadian Income but I haven't yet filed out FBAR paperwork yet. I'm stressed out on how much of my savings they may take.
Well usually my accountant for Canadian taxes charges about $250/year so that's not too bad since he does a good job.
I've been asking around for a us tax accountant in Edmonton or Calgary and the first accounting firm wanted a $15,000 retainer for lawyer fees.
Someone at my work also uses a law firm and said it cost them $1500 last year to file their return.
I assumed it would be a fairly simple tax return to file (just copy the numbers from my filed Canadian returns over to a us one).
I've been asking around for a us tax accountant in Edmonton or Calgary and the first accounting firm wanted a $15,000 retainer for lawyer fees.
Someone at my work also uses a law firm and said it cost them $1500 last year to file their return.
I assumed it would be a fairly simple tax return to file (just copy the numbers from my filed Canadian returns over to a us one).
It's not quite that simple, but once one year is done professionally, you should be fine.
Those wishing to charge more than $1500 should be shot.
Those wishing to charge more than $1500 should be shot.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best