US Citizen Retiring to Canada

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.

Moderator: Mark T Serbinski CA CPA

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nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. Makes no difference, if you reside in Canada, you pay Cdn tax on your world income.

2. Whatever income is taxable in US will be taxable in Canada.

3. Sure. Your brother will set that up, no doubt.

4. Only if your brother says so.

5. You should be reinvesting the proceeds, and, since you will be in Canada, you are better off investing with a Cdn broker, as non-retirement investment acounts must be in the coutry of residence t oconduct trades.

<i>nelsona non grata... and non pro</i>
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The proceeds from the condo sale would only trigger Cdn attention if it was sold after becoming Cdn resident.
Even then, the most you would be taxed on would be its increase in value after you entered Canada (minimal) and only if you had already established another Cdn principal residence.

There seems to be some notion on this board (particularly on the immigration side) that somehow where you put your money affect taxation: it doesn't. Both Canada and US have INCOME tax, so income, regardless of where it is incurred, is taxed based on WHEN the income occurred, not whay is subsequently done with the proceeds.

My point was that you shouldn't be putting your condo proceeds in any bank -- period, as this should be INVESTED, not stored in a bank.


There is no point bringing your 401(K) to Canada (very complicated and no tax savings), especially if you have a trustee willing and able to work with you cross-border.

<i>nelsona non grata... and non pro</i>
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