The Border Guide

Robert Keats

Description

Cross the Border with Confidence!
Now in its twelfth edition, this book is the definitive guide to everything financial for those living a cross-border lifestyle in Canada and the US. If you are a Canadian living seasonally or year-round in the US, a US citizen living in Canada, or if you have financial assets in both countries, this book can save you time, money, and headaches.
Updated for recent changes to cannabis laws and the United States-Mexico-Canada Agreement, the strategies outlined here will help you adopt the most amazing, ideal crossborder lifestyle. Imagine your own virtual private swinging door on the Canada/US border that allows you to go through in either direction whenever you want, for whatever time period you want, free from worry and funded by substantial tax reductions. Plus it will give you access to both US and Canadian medical coverage for the rest of your life! Learn how to:
• Legally reduce both Canadian and US taxes
• Protect your assets from fluctuating exchange rates
• Eliminate stress during border crossings
• Operate your business from either side of the border to your best advantage
• Make investments that are free from both income and estate taxes
• Use proven tools to eliminate both the Canadian "death tax" and US estate taxes
• Remove your RRSP and other registered plans from Canada at very low or no net income taxes using proven cross-border tools
• Use the Canada/US Tax Treaty to greatly save money and reduce taxes on the sale of your business
The included, exclusive kit of downloadable materials includes:
• Choosing a cross-border financial planner
• Lists of free, useful publications
• Lists of embassies and consulates
• — And much more!
acknowledgments xv
Introduction xvii
1. T he Swinging Door 1
Creating the Most Amazing Cross-Border Lifestyle
Choose Your Cross-Border Lifestyle 2
An Introduction to Personal Cross-Border Financial Planning 3
The Frequent Traveler Status 4
How Long Can Canadians Remain in the US? Important New Rules 5
Visitor Rules Applied 6
Summary of the Facts 10
Effortless Border Crossings 12
The Border Kit 16
Red Flags when Crossing the Border 17
Immigration Rules Are Not Tax Rules, and Vice Versa 18
Cross-Border Q&A 19
2. K eeping the Tax Man away from Your Swinging Door 25
IRS Tax Filing Rules for Vacationers, Snowbirds, and Settlers 25
The US Estate Tax Rules for Vacationers and Snowbirds 28
Provincial Medicare Rules 29
Where to Live or Winter in the US 30
Popular Cross-Border Misconceptions 34
3. T he Value of a Buck 38
How to Beat the Exchange Rate Blues
Eliminating the Exchange Rate Blues 39
Hedging Your Bets 42
No Exchange Loss If You Convert Canadian Dollars Now 43
vi
THE BORDER GUIDE
What Can You Expect If You Invest in the United States? 46
Where Is the Best Place to Exchange Money? 48
4. T he Taxman Cometh 53
Cross-Border Tax Planning
Taxing Vacationers and Snowbirds 53
Dual Citizens and Green Card Holders Resident in Canada 56
Voluntary Disclosure 58
US Tax Legislation Concerning Expatriation from the US 62
Non-Resident to Resident in the US for Income Tax Purposes 65
The Substantial Presence Test 65
The Closer Connection Exception 67
What Is the Canada/US Tax Treaty? 69
Canada and the US Do Exchange Taxpayer Information 79
Who Must File Tax Returns in the US? 80
How and When to Apply for a US Social Security or Tax ID Number 84
Canada and the United States: Income Tax Comparison 89
Cross-Border Q&A 95
5. Y ou Still Can’t Take It with You 113
Non-Resident Estate Planning
The US Non-Resident Estate Tax 116
The Taxable Estate 117
US Federal Estate Tax 117
Determining US Estate Tax Exemption 119
How to Avoid The US Non-Resident Estate Tax 121
Joint Property Ownership with Children 123
Have an Insurance Company Pay the Tax 124
Establish Appropriate Trusts 125
Use Exempt US Investments 126
Use a Canadian Holding Company 126
Sell Your Property and Rent 126
Estate Tax Concerns in Individual States 127
Is Your Canadian Will Valid in the United States? 127
Living Trusts: A Simple Solution to Problems with Wills 131
Power of Attorney: Should You Have One? 133
What Happens If You Die in the United States? 134
What Is a Gift Tax? 135
vii
CONTENTS
Creating or Receiving a Cross-Border Inheritance or Gift 136
Cross-Border Q&A 137
6. D octor in the House 149
Getting the Most from Out-of-Country Medical Coverage
Medical Coverage for the Most Amazing Cross-Border Lifestyle 155
Insurance for Canadians Moving to the United States 157
What Happens If You Get Sick in the United States? 159
Cross-Border Q&A 160
7. T ake THE Money and Run 166
An Investor’s Guide to the United States
The Investment Options 167
Understanding Investment Risk 175
The Rewards of Global Investing 178
Choosing an International Investment Manager 180
Cross-Border Q&A 184
8. C oming to America 189
Moving to the United States
How to Become a Legal Resident of the US 189
Immigration Categories 191
Derivative Citizenship: Are You a US Citizen? 201
Applying for US Citizenship 204
Dual Citizenship: Is It Possible? 205
The Green Card Lottery 207
Legal Retirement in the US 207
Canadian Residents Holding Green Cards 209
Marriage to a US Citizen 211
What to Do If You Are Refused Entry to the US 213
Cross-Border Q&A 214
9. T he Grass Is Always Greener 228
Canadian versus US Taxation Policies
Keep More of Your CPP/QPP and OAS 229
Interest Income-Tax Free, If You Wish 231
Pensions: Partially Tax Free 233
Employment Income 235
Capital Gains 236
Dividends 238
viii
THE BORDER GUIDE
Alimony 239
Total Income: The Real Comparison 239
Moving to the US to Change Employment 240
Canadian Non-Resident Withholding Tax 243
Foreign Tax Credits 245
Cross-Border Q&A 247
10. A Cross-Border Lottery: Don’t Forget to Turn
in Your Ticket 256
Withdraw Your RRSP Tax-Free on a Net After-Tax Basis 256
Settlers: Don’t Leave Home without Your RRSP 257
Ten Key Reasons to Remove Your RRSP from Canada 259
Cashing in Your Lottery Ticket Equivalent RRSP 265
Breaking the Lock on Locked-In RRSPs 268
Registered Education Savings Plans (RESPs) 270
Cross-Border Q&A 271
11. D on’t Let the Tax Door Hit You in the Behind
on the Way out 277
D ealing with Departure Tax
What Is a Departure Tax? 277
Tax on Exiting Canada 278
Canadian Departure Checklist 281
Transferring Your Credit Rating to the United States 283
US Estate Planning 285
Cross-Border Q&A 288
12. T here’s No Place Like Home 291
Returning Residents
Immigration to Canada 292
Giving Up Your US Citizenship or Green Card 292
Investment Gains and Income 293
US Retirement Plans 295
US Stock Options, Bonuses, and Deferred Compensation 297
US Social Security 298
Canadian Oas and Cpp/Qpp 298
Canadian Foreign Reporting 299
United States to Canada — Your Estate Plan 299
ix
CONTENTS
Medical Coverage 301
Deductions Lost 302
Cost of Living Adjustments 303
US Departing Alien Income Tax Return 303
Canadian Pre-Entry Review 304
Cross-Border Q&A 305
13. M oving to Canada, Eh 312
US Citizens or Residents Moving to or Investing in Canada
Americans Purchasing Property and Investing In Canada 312
Immigrating to Canada 317
When Do You Pay Taxes in Canada? 320
Cost Bump On Property upon Immigrating to Canada 321
Important Tax Concerns for Americans Moving to Canada 323
Converting Your US Estate Plan to a Canadian Estate Plan 325
Unique Tax Filing Requirements for US Citizens in Canada 327
Other Points to Consider 333
Cross-Border Q&A 334
14. Giv e My Regards to Wall Street 337
Investing as a US Settler or Resident
Investment Priorities 338
15. S ocial Security and Medicare 343
The Art of Double Dipping
Maximizing Social Benefits When Moving to the US 343
US Medical Coverage 345
Applying for US Social Security 348
Avoiding the Windfall Elimination Provisions 349
Cross-Border Q&A 353
16. T aking Care of Business 364
How Small-Business Owners Can Reap Huge Rewards
A Canadian Corporation Can Assist with US Immigration 365
How to Take a Capital Gains Tax Holiday 365
Operating a Canadian Corporation as a Settler/US Resident 369
US Estate Tax Considerations for Business Owners 371
Final Comments on Cross-Border Businesses 372
Download kit 373

Sujets

• General
• Imposition (fiscalité)
• Tax
• General officer
• Personal finance

Informations

• Publié par: Self-Counsel Press
• Date de parution: 01 septembre 2019
• Nombre de lectures: 1
• EAN13: 9781770407640
• Langue: English
• Poids de l'ouvrage: 2 Mo

Extrait

THE BORDER GUIDE
THE ULTIMATE GUIDE to Living, Working, and Investing across the Border
Robert Keats, CFP®, RFP, MSFP
Self-Counsel Press (a division of) International Self-Counsel Press Ltd. USA Canada

Copyright © 2019

International Self-Counsel Press All rights reserved.
Contents

Cover

Title Page

Introduction

Chapter 1: The Swinging Door: Creating the Most Amazing Cross-Border Lifestyle

Choose Your Cross-border Lifestyle

An Introduction to Personal Cross-Border Financial Planning

The Frequent Traveler Status

How Long Can Canadians Remain in the US? Important New Rules

Visitor Rules Applied

Summary of the Facts

Effortless Border Crossings

The Border Kit

Red Flags when Crossing the Border

Immigration Rules Are Not Tax Rules, and Vice Versa

Cross-Border Q&A

Chapter 2: Keeping the Tax Man away from Your Swinging Door

IRS Tax Filing Rules for Vacationers, Snowbirds, and Settlers

The US Estate Tax Rules for Vacationers and Snowbirds

Provincial Medicare Rules

Where to Live or Winter in the US

Popular Cross-Border Misconceptions

Chapter 3: The Value of a Buck: How to Beat the Exchange Rate Blues

Eliminating the Exchange Rate Blues

Hedging Your Bets

No Exchange Loss If You Convert Canadian Dollars Now

What Can You Expect If You Invest in the United States?

Where Is the Best Place to Exchange Money?

Chapter 4: The Taxman Cometh: Cross-Border Tax Planning

Taxing Vacationers and Snowbirds

Dual Citizens and Green Card Holders Resident in Canada

Voluntary Disclosure

US Tax Legislation Concerning Expatriation from the US

Non-Resident to Resident in the US for Income Tax Purposes

The Substantial Presence Test

The Closer Connection Exception

What Is the Canada/US Tax Treaty?

Canada and the US Do Exchange Taxpayer Information

Who Must File Tax Returns in the US?

How and When to Apply for a US Social Security or Tax ID Number

Canada and the United States: Income Tax Comparison

Cross-Border Q&A

Chapter 5: You Still Can’t Take It with You: Non-Resident Estate Planning

The US Non-Resident Estate Tax

The Taxable Estate

US Federal Estate Tax

Determining US Estate Tax Exemption

How to Avoid the US Non-Resident Estate Tax

Joint Property Ownership with Children

Have an Insurance Company Pay the Tax

Establish Appropriate Trusts

Use Exempt US Investments

Use a Canadian Holding Company

Sell Your Property and Rent

Estate Tax Concerns in Individual States

Is Your Canadian Will Valid in the United States?

Living Trusts: A Simple Solution to Problems with Wills

Power of Attorney: Should You Have One?

What Happens If You Die in the United States?

What Is a Gift Tax?

Creating or Receiving a Cross-Border Inheritance or Gift

Cross-Border Q&A

Chapter 6: Doctor in the House: Getting the Most from Out-of-Country Medical Coverage

Medical Coverage for the Most Amazing Cross-Border Lifestyle

Insurance for Canadians Moving to the United States

What Happens If You Get Sick in the United States?

Cross-Border Q&A

Chapter 7: Take the Money and Run: An Investor’s Guide to the United States

The Investment Options

Understanding Investment Risk

The Rewards of Global Investing

Choosing an International Investment Manager

Cross-Border Q&A

Chapter 8: Coming to America: Moving to the United States

How to Become a Legal Resident of the US

Immigration Categories

Derivative Citizenship: Are You a US Citizen?

Applying for US Citizenship

Dual Citizenship: Is It Possible?

The Green Card Lottery

Legal Retirement in the US

Canadian Residents Holding Green Cards

Marriage to a US Citizen

What to Do If You Are Refused Entry to the US

Cross-Border Q&A

Chapter 9: The Grass Is Always Greener: Canadian versus US Taxation Policies

Keep More of Your CPP/QPP and OAS

Interest Income-Tax Free, If You Wish

Pensions: Partially Tax Free

Employment Income

Capital Gains

Dividends

Alimony

Total Income: The Real Comparison

Moving to the US to Change Employment

Canadian Non-Resident Withholding Tax

Foreign Tax Credits

Cross-Border Q&A

Chapter 10: A Cross-Border Lottery: Don’t Forget to Turn in Your Ticket

Withdraw Your RRSP Tax-Free on a Net After-Tax Basis

Settlers: Don’t Leave Home without Your RRSP

Ten Key Reasons to Remove Your RRSP from Canada

Cashing In your Lottery Ticket Equivalent RRSP

Breaking the Lock on Locked-In RRSPs

Registered Education Savings Plans (RESP)

Cross-Border Q&A

Chapter 11: Don’t Let the Tax Door Hit You in the Behind on the Way Out: Dealing with Departure Tax

Tax on Exiting Canada

Canadian Departure Checklist

Transferring Your Credit Rating to the United States

US Estate Planning

Cross Border Q&A

Chapter 12: There’s No Place Like Home: Returning Residents

Immigration to Canada

Giving Up Your US Citizenship or Green Card

Investment Gains and Income

US Retirement Plans

US Stock Options, Bonuses, and Deferred Compensation

US Social Security

Canadian OAS and CPP/QPP

Canadian Foreign Reporting

United States to Canada — Your Estate Plan

Medical Coverage

Deductions Lost

Cost of Living Adjustments

US Departing Alien Income Tax Return

Canadian Pre-Entry Review

Cross-Border Q&A

Chapter 13: Moving to Canada, Eh: US Citizens or Residents Moving to or Investing in Canada

Americans Purchasing Property and Investing in Canada

Immigrating to Canada

When Do You Pay Taxes in Canada

Cost Bump on Property Upon Immigrating to Canada

Important Tax Concerns for Americans Moving to Canada

Converting your US Estate Plan to a Canadian Estate Plan

Unique Tax Filing Requirements for US Citizens in Canada

Other Points to Consider

Cross-Border Q&A

Chapter 14: Give My Regards to Wall Street: Investing as a US Settler or Resident

Investment Priorities

Chapter 15: Social Security and Medicare: The Art of Double Dipping

Maximizing Social Benefits When Moving to the US

US Medical Coverage

Applying for US Social Security

Avoiding the Windfall Elimination Provisions

Cross-Border Q&A

Chapter 16: Taking Care of Business: How Small-Business Owners Can Reap Huge Rewards

A Canadian Corporation Can Assist with US Immigration

How to Take a Capital Gains Tax Holiday

Operating a Canadian Corporation as a Settler/US Resident

US Estate Tax Considerations for Business Owners

Final Comments on Cross-Border Businesses

Download Kit

Dedication

Acknowledgments

About the Author

Notice

Self-Counsel Press thanks you for purchasing this ebook.

Self-Counsel Press thanks you for purchasing this ebook.
Introduction

Because our social and cultural institutions are so similar, many Americans and Canadians feel completely at home on either side of our two nations’ border. Many incorrectly assume that the laws governing investment, taxation, and immigration are the same as well. Unfortunately, this can lead to some unpleasant surprises, particularly when conducting basic financial transactions such as buying or selling real estate. The US Mexico Canada Agreement (USMCA), the demographic push of baby boomers adopting a cross-border lifestyle or retiring in large numbers to the US Sunbelt, the affordable US real estate, and the relatively lower cost of living and income taxes in the US have only served to fuel the fires of cross-border commerce. Many Canadians migrate to the Sunbelt seeking respite from harsh winters, and many Americans migrate to Canada for the pleasant summers.
The Border Guide is specifically written for both Canadians and Americans, regardless of which kind of cross-border lifestyle they are choosing to live across the 49th parallel. This, the 12th edition of The Border Guide , has been updated and rewritten to allow readers to live the most amazing cross-border lifestyle possible. It is a particularly great resource for Canadians who are considering some fo