Move or Not to Move?

Sil · Post by **Sil** » Sun Aug 21, 2005 1:11 pm

Hi Everyone, Is a U.S. Federal Government annuity received by a U.S. citizen living in Canadian taxable by Canada Revenue?
Also, if granted Canadian landing priveleges, would it be more advantageuos to sell rental real estate located in the US before or after immigrating to Canada. I contemplate selling the rental property with the next two years whether I land or not. The current value of the property is less than $US200,000.

In anticipation of any reponse I thank you.

nelsona · Post by **nelsona** » Sun Aug 21, 2005 6:59 pm

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Is a U.S. Federal Government annuity received by a U.S. citizen living in Canadian taxable by Canada Revenue?<hr height="1" noshade id="quote"></blockquote id="quote">

It is included in income to the same extent as it is on your US tax return.

The sell date doesn't make much difference tax wise, but will be much more complicated if doe after the move to canada, since you will have to report in both countries.

nelsona non grata... and non pro

Sil · Post by **Sil** » Tue Aug 23, 2005 6:33 pm

Thank You Nelson. If a citzen but not a US resident when I sell would myu US tax on capital gans be higher or does it remain at 15%?

Thank You

nelsona · Post by **nelsona** » Tue Aug 23, 2005 11:19 pm

Your capital gains rate is the same for US regardless of when you sell. The state in which the property is located would likely also want their share, again, regardless of where you live at the time.

Your Cdn capital gains tax, if you sold after arriving in Canada, would only be on the gains made after arrival in Canada, so would be quite small.

nelsona non grata... and non pro

Sil · Post by **Sil** » Sat Aug 27, 2005 5:33 pm

Thank You once again Nelson. It has come to my attention that U.S. Government employment income is not taxable by Canada by virtue of the Tax Treaty between both countries. Is this true? A possible scenario for me would be that my spouse moves (LANDS) in Canada while I'm still employed by the Federal Government.

Thank You

nelsona · Post by **nelsona** » Sat Aug 27, 2005 11:37 pm

Indeed, canada would not tax the WAGES earned in the Service of a foreign Gov't, including US. I believe this is even in the Cdn tax code, so the treaty isn't even needed for this exclusion.

This would not apply to any pension income, however.

nelsona non grata... and non pro

Sil · Post by **Sil** » Mon Aug 29, 2005 8:47 am

Thank You Nelson![:)]