Canadian In America

D. Wruk Brian

Description

?Approximately 50,000 Canadians move to the U.S. every year. Already, there are hundreds of thousands of ex-Canadians living south of the border. The similarity in language, currency, culture, services, and products of these two countries can lead Canadians in the U.S. to mistakenly think that its laws and customs are also the same. It is these areas where The Canadian in America will be crucial to anyone either contemplating a move or already living in the U.S. Can a Canadian qualify for U.S. Medicare at age 65? Is a Canadian will valid in the

Sujets

• Personal finance
• Self-help

Informations

• Publié par: Ecw Press
• Date de parution: 01 mai 2007
• Nombre de lectures: 0
• EAN13: 9781554902835
• Langue: English
• Poids de l'ouvrage: 2 Mo

Extrait

Brian Wruk and Terry Ritchie have put together the most complete resource book covering all areas of relevance for both Canadians and Americans heading south over the 49th parallel. A must-read and resource document for any practitioner serious about dealing with clients relocating south.
- Doug Macdonald , MBA, RFP , Macdonald, Shymko Company, Fee Only Financial Advisors
This is the best book I ve seen on the myriad of financial and legal issues involved in moving to the U.S.
- Ian McGugan , Editor, MoneySense Magazine
The Canadian in America is an excellent one-stop resource for Canadians living in the U.S. I will certainly recommend it to our clients.
- Geoffrey D. Leibl , Immigration Attorney, Leibl Kirkwood, San Diego
The Canadian in America
Real-Life Tax and Financial Insights into Moving and Living In The U.S.
BRIAN D. WRUK with Terry F. Ritchie
Copyright Transition Financial Advisors Group, Inc., 2007
Published by ECW PRESS 2120 Queen Street East, Suite 200, Toronto, Ontario, Canada M4E 1E2
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any process - electronic, mechanical, photocopying, recording, or otherwise - without the prior written permission of the copyright owners and ECW PRESS .
LIBRARY AND ARCHIVES CANADA CATALOGUING IN PUBLICATION
Wruk, Brian D The Canadian in America : real-life tax and financial insights into moving and living in the U.S. / Brian D. Wruk ; with Terry F. Ritchie.
Includes bibliographical references. ISBN 978-1-55022-757-4
1. Canadians - United States - Finance, Personal. 2. Canadians - Taxation - Law and legislation - United States. 3. Canadians - Legal status, laws, etc. - United States. I . Ritchie, Terry F. II . Title. HG179.W78 2007 332.024008911073 C2006-906831-3
Cover and Text Design: Tania Craan Cover Image: Boden/Ledingham Masterfile Typesetting: Mary Bowness Printing: Marquis
This book is set in Minion and Franklin Gothic
The publication of The Canadian in America has been generously supported by the Government of Canada through the Book Publishing Industry Development Program.
DISTRIBUTION CANADA : Jaguar Book Group, 100 Armstrong Ave., Georgetown, ON L7G 5S4 UNITED STATES : Independent Publishers Group, 814 North Franklin Street, Chicago, Illinois, U.S.A. 60610
PRINTED AND BOUND IN CANADA
Table of Contents
Dedication
Acknowledgements
Introduction
I. American Aspirations
What Is Transition Planning?
Before You Go!
Customs
Income Taxes
U.S.
Canada
Currency Exchange
Estate Planning
Independence Planning
Education Planning
Investment Planning
Business Entity Planning
Selecting the Right Professionals
Simplify Your Life
II. Cover Your Assets
Medical Coverage in the U.S.
Provincial Coverage
U.S. Employers
Individual Policies
U.S. Medicare
Life Insurance in the U.S.
Long-Term Care Insurance
Other Insurance: Auto, Home, Liability
Auto Insurance
Homeowner/Condominium Insurance
Liability
III. A Pledge of Allegiance
U.S. Immigration Visas
Temporary Business/Professional Visas
Facts and Myths
Myth: Special Circumstances Apply
Myth: Buy a Rental Property
Fact: You Will Get Caught
Myth: Canada-U.S. Marriages Happen Quickly
Immigrant Visas: Green Cards
1. Family Sponsorship
2. Business or Professional Relationship
Applying for a Green Card
U.S. Citizenship
1. Birth in the U.S.
Loss of Citizenship
Reinstating Citizenship
Renouncing Citizenship
2. Derivative Citizenship
Applying for Citizenship
3. Naturalization
Pros and Cons of U.S. Citizenship
Facts and Myths
Fact: Dual Canadian-U.S. Citizenship
Myth: Green Card Lottery
Becoming a U.S. Resident
Stay out of Canada
Review Your Estate Plan
Register, Apply for, Subscribe
Cancel, Cancel, Cancel
RRSPs/RRIFs
Establish a US$ Investment Portfolio
IV. Moving Your Stuff
Automobiles
Kilometers versus Miles
Safety Standards
Emissions Test
Registration
Duty
Investigation
Salt
Driver s Licence
Household Goods
Pets
Alcohol, Tobacco, Firearms
Monetary Instruments
Hiring a Mover
Visiting Canada
Passport
Gifts
Luggage
Food
Bringing It Back
Visitor Tax Refund
V. Double Taxes, Double Trouble
Tax Filing Requirements
Canada
Exit Return
Part XIII
T1 Non-Resident Return
U.S.
Severing Tax Ties with Canada
Becoming a Tax Resident of the U.S.
Substantial Presence Test
Green Card Test
Dual Status
The Canada-U.S. Income Tax Treaty
Determining Tax Residency
Sharing Information
Foreign Tax Credits
Exempt Certain Income
Withholding Taxes
Taxation of RRSPs, RRIFs, et Cetera
Fact: RRSPs/RRIFs/LIRAs Are Taxable in the U.S.
Fact and Myth: Withdraw Your RRSP Tax Free!
Myth: Roll Your RRSP into a U.S. IRA
Myth: Lump-Sum RRSP/RRIF Withdrawals Have a 10% Withholding
Myth: Withholding Tax Can Be Paid from Outside the RRSP
Taxation of Interest and Dividends
Interest
Dividends
Taxation of Capital Gains
Taxation of Pensions
Company Pension Plan
U.S. Social Security
Old Age Security
Canada Pension Plan/Quebec Pension Plan
Taxation of Rental Properties
Canada
U.S.
Social Security Number/ITIN
Social Security Number (SSN)
Individual Taxpayer Identification Number (ITIN)
Foreign Tax Credit Planning
A Simplified Example
Key Tax Differences
Alternative Minimum Tax
Payroll Taxes
Sales Taxes
VI. Show Me the Money
Currency Exchange Facts and Myths
Myth: You Lose Money When You Convert
Myth: Someone Knows Where the Exchange Rate Is Going
Myth: Wait to Convert
Fact: How to Calculate Exchange Rates
Fact: There Is an Expense to Converting
Mortgages
Amortization
Fixed Interest Rate
Prepayments
Down Payment
Closing Costs
Points
Impound (Escrow) Accounts
Applying
Establishing a Credit Rating
FICO Score
Before You Apply
Transfer Your Credit Rating
Applying for a Credit Card
Canadian-Friendly Companies
VII. Till Death Do Us Part
Taxes at Death
Canada
U.S.
1. Estate Taxes
2. Gift Taxes
3. Generation-Skipping Transfer Taxes
4. State Death Taxes
5. Income Taxes
Death of Non-U.S. Citizens
The Trust-Centered Estate Plan
Revocable Living Trust
Last Will
General Power of Attorney
Health-Care Directives
Estate Plan Implementation
Gifting
Gifting to a Non-Citizen Spouse
Gifting to Others
Receiving an Inheritance or Gift From Canada
Taxation of Trusts
VIII. Financial Freedom
Canada Pension Plan/Old Age Security
Qualifying for CPP/QPP
Qualifying for OAS
U.S. Social Security
Windfall Elimination Provision
Individual Retirement Accounts (IRAs)
Canadian Company Pensions
U.S. Retirement Plans
401(k) Plan
403(b) Plan
457 Plan
Defined Benefit Plans
SEP-IRA, SIMPLE Plans
Employee Benefit Plans
Stock Options
Deferred Compensation/Retirement Compensation Arrangements
IX. Smarten Up!
What Happens to My RESP?
Education Saving Opportunities in the U.S.
Coverdell Education Savings Account
UTMA
State College Savings Plans
Hope Scholarship Credit
Lifetime Learning Credit
Student Loan Interest Deduction
Tuition and Fees Deduction
Key Differences
X. Money Doesn t Grow on Trees
Keeping Accounts in Canada
Setting Up Accounts in the U.S.
Where to Set Up
Temporary Visa
Social Security Number/ITIN
Titling Your Account
Canadian Loonie Accounts
Moving Investments to the U.S.
Moving Your RRSP/RRIF
Myth: Move Your RRSP to an IRA
Locked-In Retirement Accounts
Specific Types of Investments
Lobbying Your Broker
Investing in the U.S.
Investment Expenses
Tax-Preference Investments
Other Differences
Foreign Tax Credit Planning
Our Investment Philosophy
XI. The Business of Business
Emigrate to the U.S.
Health-Care Coverage
Income Tax Implications
Canadian Tax Implications
U.S. Tax Implications
U.S. Business Entities
A Simplified Example
Taxation While in Canada
Taxation When Moving to the U.S.
XII. Mayday, Mayday
Selecting a Transition Planner
Competence
Planning Process
Client Relationship
Nature of the Firm
Regulatory Compliance
Compensation
Our Firm
Head Office
Satellite Offices
XIII. Realizing the Dream
Military
Government
Heritage
Sports
Food
The Postal System
The English Language
The Metric System
Encyclopedia
Geography
Government
Miscellaneous Trivia
The Tax System
Appendices
Appendix A Glossary
Appendix B Resources You Can Use
Appendix C Transition Planner Interview Checklist
Appendix D 100 Questions Typically Asked by the U.S. CIS Examiner
[Appendix D also includes Pilot Exam Questions ]
Appendix E Comprehensive Case Study: Working Couple
Appendix F Comprehensive Case Study: Retired Couple
Index
I dedicate this book to my grandparents who have gone home to be with their Saviour in heaven. They pursued their own dreams and left Europe to homestead in Canada, creating the next generation of Canadians.
Wilhelm and Louisa Wruk
Edward and Ottilie Hiller
The Lord your God has blessed you in all the work of your hands. He has watched over your journey.
Deuteronomy 2:7
Acknowledgements
Given the vast complexities and issues surrounding any move to the U.S., we are unashamed to say we don t know everything! However, we view ourselves as the quarterback of a team of people to effectively coordinate your move. To that end, our firm relies on a large network of trusted, competent professionals to assist with the variety of issues our clients have. We view our knowledge as being a mile wide and a foot deep, but we have experts in all areas whose knowledge is a foot wide but a mile deep. We have drawn upon these experts to review various parts of this book, and want to thank them individually for their assistance in making this large undertaking possible.
Richard Brunton, a fabulous Canada-U.S. tax accountant in