question about US exit tax, dual citizen living in 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

Post Reply
tdiddy
Posts: 10
Joined: Thu Oct 17, 2013 12:16 am

question about US exit tax, dual citizen living in Canada

Post by tdiddy »

Since FACTA has been in the news all day, it has reopened my question about whether I should renounce US citizenship, as I do not picture myself working outside of Canada in the future.

Presently, all my US returns are up to date, and I would not be covered under the exit tax. As my earning have recently increased , this will not likely be the case for more than another year. My partner is a Canadian citizen only. If, in the future I were to decide to renounce, is there any strategy to transfer assets temporarily into his name to avoid the exit tax?

Also, from what I can understand RRSPs would be taxed fairly heavily in the exit tax plan. Should I factor this into my future investment strategies?

I was leaning towards keeping dual citizenship, but getting cold feet and am wondering if I'm at a now or never moment in terms of renouncing....
Post Reply