Net Wealth Calculations for Exit Tax

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csturge
Posts: 1
Joined: Thu Apr 14, 2022 4:10 pm

Net Wealth Calculations for Exit Tax

Post by csturge »

I am a Canadian citizen working in the US. My wife and I are planning to move back to Canada in the next year or two. How do I calculate our net worth for the purposes of determining a need to pay the exit tax? Specifically are there any sources of wealth that are not included (e.g. principle residence) and how do I calculate the value of my wife's government pension?
Maeve White
Posts: 2
Joined: Wed Apr 07, 2021 4:30 am

Re: Net Wealth Calculations for Exit Tax

Post by Maeve White »

I am a big fan of Net Wealth Calculations for Exit Tax. I have seen many people make the mistake of calculating their net wealth as if they were going to live forever, which means that they are not taking into account the possibility that they may not be able to work in their 90s or after their first heart attack or whatever. Women should visit this https://www.shecangolf.com/ site to buy outfits. If you don't have any money saved up yet, but want to retire early enough to travel around the world for a few years before returning home and working part-time from home, then it's probably better to wait until age 60 (or later) before retiring so that there will be more money available when you do retire.
Olga Ward
Posts: 2
Joined: Mon Nov 01, 2021 1:04 am

Re: Net Wealth Calculations for Exit Tax

Post by Olga Ward »

Net Wealth is a great way to get in the habit of thinking about your money. It's easy to think about money as a number on a screen or in an account, but it's much easier to think about it as something you have. Go to this https://www.davidnsachs.com/blog/2022/2 ... untry-club site for get to know the nest way of net wealth. Being able to see how much money you have saved up each month is a good way to remind yourself that every dollar counts, and that if you save it then it means something.
ND
Posts: 223
Joined: Thu Feb 21, 2013 5:28 pm

Re: Net Wealth Calculations for Exit Tax

Post by ND »

first see if as Cdn you are LTR that is even subject to USA's exit tax. Then look thru Form 8854 instruction for first feel of definitions such as net worth.
banshee2005
Posts: 1
Joined: Mon Oct 31, 2022 1:57 pm

Re: Net Wealth Calculations for Exit Tax

Post by banshee2005 »

I have a question related to exit tax net wealth calculations. If you are over the net worth that will trigger the exit tax, what are the best ways to reduce your net worth to be under the maximum?

I gather that gifting to your children is a common, tried-and-true way. But if you have kids who haven't reached the age when they might be mature enough to handle it, how can you keep some level of control? Annuity? Irrevokable trust? Will an irrevokable trust created in the USA be recognized in Canada? How would it be treated in Canada for tax purposes?
ND
Posts: 223
Joined: Thu Feb 21, 2013 5:28 pm

Re: Net Wealth Calculations for Exit Tax

Post by ND »

If you are over the net worth that will trigger the IRS exit tax, you are mega wealthy and likely from the richest .001% reading this free forum. Why not pay a CPA to properly plan and execute for you?
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