What if a US citizen establishes a foreign immigration trust and spends say 48 months in Canada as a resident then moves back to the US. 2 years later, the same US citizen moves back to Canada to become a resident again, can they re-establish a new foreign immigration trust and get another 60 months? or, is the 48 months from the first go-around deducted in some way?
Also, what if any impact would there be on a foreign immigration trust if the person becomes a Canadian (dual) citizen versus just being a resident?
Thanks.
foreign immigration trust question
Moderator: Mark T Serbinski CA CPA
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Re: foreign immigration trust question
The 60 months is cumulative as you have surmised. So, only one lick at the can.webcite_99 wrote:What if a US citizen establishes a foreign immigration trust and spends say 48 months in Canada as a resident then moves back to the US. 2 years later, the same US citizen moves back to Canada to become a resident again, can they re-establish a new foreign immigration trust and get another 60 months? or, is the 48 months from the first go-around deducted in some way?
Also, what if any impact would there be on a foreign immigration trust if the person becomes a Canadian (dual) citizen versus just being a resident?
Thanks.
Dual citizenship would not change your Canadian tax status, so it would have no impact in the scenario as presented. If you already are a Canadian citizen and lived in Canada previously, that time counts against the 60 months.
This is a complicated area, requiring dealing with a good tax lawyer.
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No.
In fact, if any of your funds were to declare a distribution on Dec 31 (this was common in the past, less so now) you would be on the hook for cdn tax.
Canada gives you about $25 tax deduction for every day you are a resident. ($8000/yr prorated), so not worth declaring early.
Unlike US, where even one days taxation gets you the same exemption as the whole year.
In fact, if any of your funds were to declare a distribution on Dec 31 (this was common in the past, less so now) you would be on the hook for cdn tax.
Canada gives you about $25 tax deduction for every day you are a resident. ($8000/yr prorated), so not worth declaring early.
Unlike US, where even one days taxation gets you the same exemption as the whole year.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing