Canadian plan to move back to Canada after years working on TN

[nelsona]

Yes, of course you will pay US tax, whether you are a citizen or not, but this tax will be withheld at source (15%) if you are not US citizen. No point reducing the US tax by any means, since any savings will by taken up by CRA.

For losses, you would only be able to claim those past losses if you sold a US property. and any loss carryforward is reduced by $3000 each year whether you use it or not. Otherwise cap losses cannot be reported on a 1040NR.

So work out your net loss to be roughly $3000 in the year you leave, as this is your last realistic opportunity.

[henryu88]

frank wrote:
> Thanks for the information, it is very helpful.
>
> do you know any Canadian broker can accept stock and ETF account transfer
> from my US broker? I prefer to keeping the account in US$ after transfer,
> is this allowed to keep in US$?
>
> also I check with my US broker which allows me to keep my 401(k) and HSA as
> is after moving back to Canada. if I withdraw my 401(k) in future in
> Canada, should I need to pay US tax for the amount of withdrawal?
>
> thank you!
Hello,

I was told by my broker (fidelity) that I can keep my 401(k), IRA, and HSA accounts after moving back to Canada. However, while I can adjust investments in my 401(k), my IRA and HSA accounts are limited to selling existing securities, with no option to purchase or change new ones.

Could you confirm if there are any similar limitations on HSA accounts with your institution?

Additionally, does anyone know why this limitation applies to IRAs but not 401(k) accounts?

Thank you!

[BeaconHillWealth]

This has been a huge issue for clients with Fidelity and other US brokers.

Most US RIAs cannot manage taxable accounts for Canadian residents and although the registered plans can stay in the US, they can't be properly managed. Always best to find a cross-border RIA in Canada to help.

Phil

henryu88 wrote:
> frank wrote:
> > Thanks for the information, it is very helpful.
> >
> > do you know any Canadian broker can accept stock and ETF account transfer
> > from my US broker? I prefer to keeping the account in US$ after transfer,
> > is this allowed to keep in US$?
> >
> > also I check with my US broker which allows me to keep my 401(k) and HSA as
> > is after moving back to Canada. if I withdraw my 401(k) in future in
> > Canada, should I need to pay US tax for the amount of withdrawal?
> >
> > thank you!
> Hello,
>
> I was told by my broker (fidelity) that I can keep my 401(k), IRA, and HSA accounts
> after moving back to Canada. However, while I can adjust investments in my 401(k), my
> IRA and HSA accounts are limited to selling existing securities, with no option to
> purchase or change new ones.
>
> Could you confirm if there are any similar limitations on HSA accounts with your
> institution?
>
> Additionally, does anyone know why this limitation applies to IRAs but not 401(k)
> accounts?
>
> Thank you!

[henryu88]

Thanks, Phil.
Do you mean I need to hire a cross-border RIA to manage and make investment changes in my IRA account with US Fidelity?

[BeaconHillWealth]

To actually make changes to the IRA you'll need to have it managed by an RIA in Canada with a US license. We do this for clients, however due to high demand currently we have minimums.

You can try to book here to see if you qualify for a complementary consultation:

https://beaconhillwm.ca/contact/

Hope that helps and let me know if you have any other questions.

Cheers

Phil

henryu88 wrote:
> Thanks, Phil.
> Do you mean I need to hire a cross-border RIA to manage and make investment
> changes in my IRA account with US Fidelity?

[henryu88]

Thank you for your information.

[BeaconHillWealth]

You're very welcome.

Phil

henryu88 wrote:
> Thank you for your information.

[frank]

henryu88 wrote:
> frank wrote:
> > Thanks for the information, it is very helpful.
> >
> > do you know any Canadian broker can accept stock and ETF account transfer
> > from my US broker? I prefer to keeping the account in US$ after transfer,
> > is this allowed to keep in US$?
> >
> > also I check with my US broker which allows me to keep my 401(k) and HSA as
> > is after moving back to Canada. if I withdraw my 401(k) in future in
> > Canada, should I need to pay US tax for the amount of withdrawal?
> >
> > thank you!
> Hello,
>
> I was told by my broker (fidelity) that I can keep my 401(k), IRA, and HSA accounts
> after moving back to Canada. However, while I can adjust investments in my 401(k), my
> IRA and HSA accounts are limited to selling existing securities, with no option to
> purchase or change new ones.
>
> Could you confirm if there are any similar limitations on HSA accounts with your
> institution?
>
> Additionally, does anyone know why this limitation applies to IRAs but not 401(k)
> accounts?
>
> Thank you!

seemed they (also Fidelity) told me same thing. when you do adjustment of investments, need to call them to adjust. can not do it online by yourself.

thanks.

[frank]

I am Canadian, currently working in the US under a TN visa, and have claimed non-resident status in Canada. I’m planning to buy a condo in Toronto for retirement in the near future. I have the following questions:

Am I able to buy a condo while still working in the US?
If so, will I be required to pay the Non-Resident Speculation Tax?
Are there any complications I should be aware of when filing my US taxes?

[frank]

I am Canadian, currently working in the US under a TN visa, and have claimed non-resident status in Canada. I’m planning to buy a condo in Toronto for retirement in the near future. I have the following questions:

Am I able to buy a condo while still working in the US?
If so, will I be required to pay the Non-Resident Speculation Tax?
Are there any complications I should be aware of when filing my US taxes?

[nelsona]

You are able to buy a condo. It will not make you a resident of Canada for tax purposes.
It would appear that as a Cdn citizen, you would be exempt from the NRST (you would howver be treated as a non-resident by the banks, requiring at least 35% down payment.
It only gets complicated if you rent out the condo.

[frank]

I am a Canadian working in the U.S. on a TN visa and plan to return to Canada for retirement in the near future. I have a question about the timing of selling my primary residence in the U.S. Do I need to sell it before moving back to Canada to avoid paying taxes in Canada on the gains?

Thank you so much!

[nelsona]

When you re-establish CDn tax residency, all your investments are deemed sold and repurchased that day, so if you do not sell before returning, you would only be on the hook for any gains from your arrival date until you sold, so not very much, if at all (since you would subtract your selling costs from the proceeds in any event),

I would not rush a sale at a lower price just for the little taxes, if any that you might pay.

[nelsona]

... and if you don't own a house in Canada right away, and there is some Cap gains arising from the sale you can elect , when you sell the US home (assuming you don't rent it) , to treat it as your Principal Residence for the period from your return to Canada until the sale date.

[frank]

Thanks Nelsona ! it is very helpful.

is applying for an OHIP card considered as establishing Canadian tax residency?