Dual Canadian/US Citizen tax implications

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csang
Posts: 2
Joined: Wed Jan 18, 2012 8:48 pm

Dual Canadian/US Citizen tax implications

Post by csang »

I was born in the US, but I have been living in Canada for 20 years (I am a Canadian citizen). I currently file a Canadian and US tax return. I am planning to move to Florida and I am concerned about the tax implications with my RRSP's and my TFSA. I manage my own RRSP and would like to know what would happen to it , if I move to the US? Does it collapse? Would I be taxed on it? Is there any exemptions allowed if I decide to only move to the US for 3 - 4 years? I am unable to find these answers and would like to know what I can do to best protect my savings. Thank you
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

The RRSP will have to be frozen but not cashed in and will be reported to teh IRS annually from date of arrival it is not taxed while you live in teh US nor will Canada tax it on deprture. The TFSA will result in tax since it is tax free in Canada but not US cash it in before you leave Canada
JG
csang
Posts: 2
Joined: Wed Jan 18, 2012 8:48 pm

Post by csang »

What does it mean if my RRSP is frozen? What would happen to my investments in that account? Since I manage it myself. Also, what if I choose to stay in Florida permanently after the 3 - 4 year period, what would the implications be then? How long can an account be frozen for? Thank you.
nelsona
Posts: 18680
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You need to transfer the RRSP to a broker in canada allowed to deal with FL residents.
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
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