confused dual US/CAD citizen moving back to CAD next week...

nelsona · Post by **nelsona** » Sat Nov 21, 2009 9:59 pm

You should MOVE to Washington. I can't put it any other way. Right at the edge of Canada would be even better.

jmega · Post by **jmega** » Sat Nov 21, 2009 10:05 pm

Ok. Man another thing I need to worry about now!

What do you mean by the border comment? Are you suggesting Montana instead, since there is no state tax there but closer to Alberta? Confused by your proximity to the border comment.

I suppose I can tell them that I moved to Montana for a month to try and sell my California BMW, since I did not feel like paying all the duty/GST crap on it to import it. Both fingers crossed that they will buy the story.

But I really dont want to go through the hassle of obtaining a Montana drivers license etc etc etc. But I will if I have to. Not trying to get you in trouble, so I understand if you dont respond.

jmega · Post by **jmega** » Sat Nov 21, 2009 10:18 pm

i am thinking more about this --

i will actually have ZERO income in california+fedreal, effective Dec 09. so -- if I do the ROTH conversion in Jan 2010, will i still take a tax hit? i would only suspect so, if the conversion results in regular income :(

nelsona · Post by **nelsona** » Sat Nov 21, 2009 11:08 pm

Roth conversions are all taxable income (and don't forget you will have to report your Cdn income on your 1040 next year too, so you will have tax to pay.

The reason to do it before moving is not to avoid a tax hot, it is for canada to recognize the Roth's tax-free status.