Hi:
I am a Canadian citizen who has lived in the US for 7 years now on TN status and am contemplating a permanent return to Canada. I have heard from one source that the overall tax liability can be reduced by planning repatriation in the middle of the calendar year. It works by reducing taxes payable to both Canada and US since you are reporting half of your income to each jurisdiction during the year of repatriation, allowing your income in each country to be taxed at lower marginal tax brackets.
However, other sources have refuted this since I thought ONE country required reporting of world-wide income, which argues against the above arguement.
Has anyone heard of this?
Your help is much appreciated.
Doug
Best time of the year to return to Canada
Moderator: Mark T Serbinski CA CPA
Other than being sure to move to canada AFTER you have taken any discretionary US-sourced income 9and delaying triggering cap gains until after you leave), there is no real advantage to timing your departure.
Other factors, like how much you are earning in US vs Canada play a much bigger role in your overall income.
Other factors, like how much you are earning in US vs Canada play a much bigger role in your overall income.
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
This whole arguement came about from advice I received from an accountant specializing in US/Canada tax law who would have prepared my dual returns in this favorable way to reduce taxation in both countries. I wondered if what he was suggesting was "legal" since all other information I received elsewhere refuted this point.
Thanks for further clarification on this issue.
Doug
Thanks for further clarification on this issue.
Doug
Leaving US early in the year, and then filing a return in which you exempt your post-departure Cdn wages (nothing illegal) USED TO be mildly advantageous, but is less so now with new rules on that exclusion. But in any event, this Cdn income would still be reported in canada anyways, so where is the savings. This only works when moving to a low-taxed country.
Like I said, you should be looking at pre- and post-departure INCOME streams as your primary deciding factor.
If your goal is to taxed less , then certainly quitting a $100,000/yr job for a $50,000/yr one will do the trick.
You don't say what is 'trick' is.
Like I said, you should be looking at pre- and post-departure INCOME streams as your primary deciding factor.
If your goal is to taxed less , then certainly quitting a $100,000/yr job for a $50,000/yr one will do the trick.
You don't say what is 'trick' is.
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