Canada or US

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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butlertl
Posts: 20
Joined: Sun Feb 12, 2006 9:01 pm

Canada or US

Post by butlertl »

I am US Citizen and my wife is Canadian and now a US Citizen. She is going to sponser me for Canadian Citizenship.......

For tax purposes...is it better to remain a US Citizen only and then have a summer home in Canadian? Or, If I become a Canadian Citizen are we subject to the higher tax rate in Canada? We will be retiring in a year or two.

Thanks
T Butler
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

She can't really sponsor you for Cdn citizenship. She can sponsor you to become a Cdn permanent resident, and then you can become citizen after a qualifying period., a good part of which must be spent in canada.

http://www.cic.gc.ca/EnGLish/citizenshi ... bility.asp

But, hypothetically, if you would ever get Cdn citizenship, and then no longer lived in canada, you would not be taxable in canada on anything but Cdn-source income.

Cdn taxation is based on residence, unlike US, which is based on citizenship or residence.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
butlertl
Posts: 20
Joined: Sun Feb 12, 2006 9:01 pm

Post by butlertl »

So...maintaining a perminant residence in the US and a summer home in Canada...We would not pay Canadian taxes.

Thanks...this will help with our retirement plans.

We would be taxed on her RSP use though.....
T Butler
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

You will be taxed in both Canada and US on her RSP and on her summer home, of course.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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