Long-term tax efficiency, US vs Canada

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sws
Posts: 2
Joined: Sat Apr 04, 2020 7:47 am

Long-term tax efficiency, US vs Canada

Post by sws »

If you have the option of being a fiscal resident in either Canada (as a citizen) or the US (as a GC holder), which would have the lowest long-term tax cost? Income is 100% via self-employment (as a contractor) and (primarily) investment income.

If in Canada, I would likely live in Alberta. If in the US, likely Vermont in the short-term and out west (in a low-tax state) in the long-term. (If this is too generic a question, please let me know what other information I can provide.) Thanks for your help.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Long-term tax efficiency, US vs Canada

Post by nelsona »

Where will you be physically working?

If you want to keep your GC, you will need to live in US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
sws
Posts: 2
Joined: Sat Apr 04, 2020 7:47 am

Re: Long-term tax efficiency, US vs Canada

Post by sws »

Okay, thanks. Good to know. I work remotely, so any low-tax state will do.

So even a marriage GC would be lost if not working in the US?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Long-term tax efficiency, US vs Canada

Post by nelsona »

Yes, after two years, or after it becomes clear to CBP that you live in Canada, whichever is shorter, your GC will be confiscated,
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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