Long-term tax efficiency, US vs Canada

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
sws
Posts: 2
Joined: Sat Apr 04, 2020 7:47 am

Long-term tax efficiency, US vs Canada

Post by sws »

If you have the option of being a fiscal resident in either Canada (as a citizen) or the US (as a GC holder), which would have the lowest long-term tax cost? Income is 100% via self-employment (as a contractor) and (primarily) investment income.

If in Canada, I would likely live in Alberta. If in the US, likely Vermont in the short-term and out west (in a low-tax state) in the long-term. (If this is too generic a question, please let me know what other information I can provide.) Thanks for your help.
nelsona
Posts: 18704
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Long-term tax efficiency, US vs Canada

Post by nelsona »

Where will you be physically working?

If you want to keep your GC, you will need to live in US.
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
sws
Posts: 2
Joined: Sat Apr 04, 2020 7:47 am

Re: Long-term tax efficiency, US vs Canada

Post by sws »

Okay, thanks. Good to know. I work remotely, so any low-tax state will do.

So even a marriage GC would be lost if not working in the US?
nelsona
Posts: 18704
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Long-term tax efficiency, US vs Canada

Post by nelsona »

Yes, after two years, or after it becomes clear to CBP that you live in Canada, whichever is shorter, your GC will be confiscated,
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
Post Reply