Canadian Citizen, US greencard holder - tax implication

[lysia]

Hi, My husband is US citizen works and lives in the US, I am Canadian citizen and will get my US greencard soon. I need to decide which side to reside.

Since I have few more years to qualify for receiving CPP payment in the future, I do not want to lose the status and would like to keep the Canadian residency.

[b]Question:[/b]

1) What is the tax implication (Both in the US and in Canada) if I keep the Canadian residency?

2) My Canadian pal wants to cofound a company with me in Canada, would that add complication to my tax situation?

Thanks.

[nelsona]

If you work one year in Canada, you qualify for CPP. so I'm not sure what your issue is.

You can only "keep" Cdn residency by actually living in Canada, which would eventually violate your GC status.

2. It might not be considered a Cdn-owned company, so would lose those benefits.

[lysia]

Hi, Nelsona,

Thanks for the reply.

Regarding #2), you mentioned that the company that I will join may not be considered as Canadian owned company and may lose the benefit.

Would you please kindly elaborate a little bit?

a) why it will not be Can owned? (my pal is Canadian, I am canadian with GC)
b) what benefits that we may lost?

Thanks.

P.S. Mr. Mark Serbinski runs Canadian accounting firm and lives in FL, I wonder how he runs.

[nelsona]

a) you would not be a Cdn resident. All matters dealing with Cdn tax are based on tax RESIDENCY, not citizenship.
b) preferential CCPC cdn-controlled private corporation tax rates and incentives. Your partner might not want to be 50-50 with you on this. Consult a corportte tax expert.

[lysia]

I see. Got it! Thanks very much.