Departure Tax

[YankCanuck]

Can someone explain how one is taxed when one moves to the US from Canada (ie. the departure tax)? I am a dual citizen who was born and raised in the US, moved to and has lived in Canada for 26 years, has two grown dual citizen children, and is no longer married. I am considering relocating to a warmer climate and am weighing the pros and cons of making my primary residence in the US or just adopting a snowbird lifestyle. Looking into issues such as departure tax, health care, estate taxes, RRSP income, etc. Thank you.

[nelsona]

All your investments (with a few exceptions) are deemed by CRA to have been sold on the day you left, triggering cap gains (and losses) on that day, and reported as such on your departure return,

See the CRA Emigrant guide on their website.

For US citizens, IRS essentially accepts this process as well, so that the tax you pay in Canada can be used on your US return in the same year.

You will need your own US health insurance, since your provincial coverage lapses when you leave.

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