Hi I am a Canada senior married to a CAN PR US citizen we plan to move to US
Was told I must sell my shares in my LTD company and repurchase.
How do I value shares, I am only stockholder?
If I then draw dividends instead of wages are the taxable in Can?
Can I collect my OAP & CPP in USA? Are they taxable in CAN?
Thanks in advance
Canadian senior moving to USA tax questions
Moderator: Jim Eiss
Did not see your post since its a tax question it should have been posted in thh tax forum , so next time please do so .
Qick answer
1) Use book vale retained earnings plus any value increase in hard assets on hand to reflect market value, shorto of that you would require a business valuation if it is not straightforward.
2) On departure thyere is a deemed disposition of your shrs in teh compmany this means unless you physically sell them to a 3rd party a deemed dividend to you, this amount will be credited to your loan account and you can then draw down on this tax free while in the US since its capital. The deemed dividend will be taxed to you while you are resident.
3) You can coollect OAS and CPP while in US there will be witholding tax on the CPP I believe but none on OAS and its not taxable any more in Canada.
Qick answer
1) Use book vale retained earnings plus any value increase in hard assets on hand to reflect market value, shorto of that you would require a business valuation if it is not straightforward.
2) On departure thyere is a deemed disposition of your shrs in teh compmany this means unless you physically sell them to a 3rd party a deemed dividend to you, this amount will be credited to your loan account and you can then draw down on this tax free while in the US since its capital. The deemed dividend will be taxed to you while you are resident.
3) You can coollect OAS and CPP while in US there will be witholding tax on the CPP I believe but none on OAS and its not taxable any more in Canada.
JG