This question probably has already been asked. I spent quite some time reading various posts at this forum, read somewhat similar questions but did not get a clear picture pertaining to my situation shown below:
My wife and I are dual citizens of Canada and USA. I am working in the US since 1994 and have filed our joint tax returns in the US each year since 1994 including 2014. Prior to that we used to file it in Canada.
Currently, I have none of these in Canada (i.e. bank account, investment, RRSP, TFSA, house, etc.)
However, in the US, I have an employer sponsored 401K and a self-directed ROTH IRA. I plan to buy a house in Ontario, Canada in May 2015 and move back to live in there in August 2015 onwards as I am retiring from my US employment. I plan to convert my entire employer sponsored 401K into ROTH IRA in 2015 and pay my taxes on it in my 2015 US Tax Return.
My self-directed ROTH IRA invests in “Alternative Assets like IRA LLC, Residential and Commercial real estate, and private stockâ€. Can I let my self-directed ROTH IRA account and its investments continue to grow tax free profits in the US while I am living in Canada? I believe I can take tax free withdrawals at any time from my self-directed ROTH IRA account as it was opened over 14 years ago and I am over 60. If so, how do I declare these withdrawals on my Canadian Tax Returns?
As I will be residing in Canada on 12/31/2015, I’ll be filing my tax return for Canada for my self-owned small business that I’ll start in August 2015 and tax return for USA as I have employment income in the US for 2015. I’ll appreciate to have any valuable suggestions to comply with all tax legalities of both Canada and USA. Would I be required to file any US tax returns after 2015 while completely living in Canada? How do I declare all my US taxed funds that I take to Canada in May 2015 to buy my house and start my small business? Thanks.
Dual citizens of Canada and USA seek some tax guidance
Moderator: Mark T Serbinski CA CPA
You will of course file forever in US, due to your citizenship.
Your CDn tax will begin when you return, so make sure you convert to Roth before moving.
Next spring you will attach a statement to your CRA return reporting the existence of your Roth. As long as you NEVER make a contribution to your Roths after arriving in Canada, they will be tax-free forever in Canada (like US).
Canada doesn't have wealth tax, they only tax income. so funds you bring to Canada aren't taxed. The income is, whether it is left in US or not.
All your non-retirement assets will be revalued for CDn tax purposes after moving, so don't sell any winners until then.
Others can speak on remaining issues.
Your CDn tax will begin when you return, so make sure you convert to Roth before moving.
Next spring you will attach a statement to your CRA return reporting the existence of your Roth. As long as you NEVER make a contribution to your Roths after arriving in Canada, they will be tax-free forever in Canada (like US).
Canada doesn't have wealth tax, they only tax income. so funds you bring to Canada aren't taxed. The income is, whether it is left in US or not.
All your non-retirement assets will be revalued for CDn tax purposes after moving, so don't sell any winners until then.
Others can speak on remaining issues.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Thank you nelsona. You wrote "You will of course file forever in US, due to your citizenship.". This made me Google and found a document at http://www.bmo.com/pdf/nesbitt/USCitize ... O%20NB.pdf that is very helpful and I am listing it here just in case it may help someone in the future.