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Publié par | Self-Counsel Press |
Date de parution | 30 avril 2016 |
Nombre de lectures | 0 |
EAN13 | 9781770408746 |
Langue | English |
Poids de l'ouvrage | 1 Mo |
Informations légales : prix de location à la page 0,0032€. Cette information est donnée uniquement à titre indicatif conformément à la législation en vigueur.
Extrait
Taxation of Americans in Canada
Are YOU at risk?
Dale Walters, CPA, PFS, CFP® with Sally Taylor, CPA, and David Levine, CA, CPA
Self-Counsel Press (a division of) International Self-Counsel Press Ltd. USA Canada
Copyright © 2016
International Self-Counsel Press All rights reserved.
Contents
Cover
Title Page
Chapter 1: Before You Go to Canada
1. Planning Your Move
2. Expatriation
3. Your Rights after US Citizenship Is Terminated
4. Tax Planning before You Go
Table 1: Comparison when Cashing Out Accounts
Chapter 2: Your First Year in Canada
1. Overview of Filing Requirements When You Are in Canada
2. Determining Canadian Residency
3. First Things First
4. Deemed Acquisitions
5. First-Year Tax Filing
6. Contributions to Retirement Plans
7. Social Security
8. Differences in How Certain Income Is Taxed
9. Deductions and Credits
10. US Filing Requirements
11. The Totalization Agreement
12. Canadian Health Insurance
Chapter 3: An Overview of Canadian Taxation
1. Two Important Points to Set the Stage
2. History of Canada Revenue Agency (CRA)
3. Filing Requirements in Canada
4. Summary of Major Differences between Canadian and US Taxes
5. Filing Requirements in the US
Table 2: Do You Have to File a US 2015 Federal Tax Return?
6. Penalties and Interest for Underpayments, Late Filings, and Late Payments
7. Filing Status
8. Address Changes
9. Overview of Entity Taxation and Rates
Table 3: Canadian Corporate Tax Rates*
10. Carrying Charges
11. Alternative Minimum Tax
Table 4: Tax Rates for Canadian-Controlled Private Corporations
Table 5: Combined Maximum Personal Tax Rates 2016
Table 6: Provincial/territorial tax rates for 2016
Table 7: Canadian Federal Individual Tax Calculation
12. Residency
13. Tax Audits and Dealing with the CRA
14. Dealing with the CRA
Chapter 4: The Treaty
1. History of the Canada-US Tax Treaty
2. Treaty Overview
3. Inside the Treaty
4. Residency
5. Real Property
6. Dividends, Interest, and Royalties
7. Gains on Personal Property
8. Personal Services
9. Artists and Athletes
10. Pensions and Annuities
11. Social Security
12. Government Service
13. Students
14. Taxes Imposed by Reason of Death
Chapter 5: Foreign Tax Credits
1. What Are Foreign Tax Credits?
2. The Foreign Tax Credit in Canada
3. The Foreign Tax Credit in the US
Chapter 6: Retirement Plans, Pensions, and Social Security
1. US Taxation of Canadian Retirement Plans
2. Canadian Taxation of US Retirement Plans
Table 8: US Required Minimum Distribution Table (Table III Uniform Lifetime Table*)
Table 9: Minimum RRIF Distributions (Canada)
Table 10: Pros and Cons of rolling 401(k) or IRA to an RRSP)
3. The Totalization Agreement and the Windfall Elimination Provision (WEP)
Chapter 7: Investing in Canada
1. Comparing the US and Canadian Securities Markets
Table 11: Stock Markets
Table 12: Stock Sectors
Table 13: A US-Canada Stock Market Comparison
2. Taxation of Dividends in Canada
3. Basics of the US Net Investment Income Tax (NIIT)
Table 14: Thresholds for US NIIT
4. Savings Accounts for Retirement and Education
5. Real Estate
Table 15: Comparison of 529 Plans versus RESP Accounts
Chapter 8: Common Deductions on Canadian Income Taxes
Table 16: Determining Taxable Income in Canada: Federal Individual Tax Calculation
1. Employment or Office Deductions
2. Business Deductions
Table 17: Commonly Used CCA Classes
3. Other Personal Deductions
Table 18: Disability-Related Tax Measures
4. Nonrefundable Tax Credits
Table 19: Credits and Prorating
Table 20: Non-Eligible Dividend Gross-up Percentages and Tax Credits
5. Refundable Tax Credits
Table 21: GST/HST Credits: July 2015 – June 2016 (tax year 2014)
Table 22: Summary of 2016 Nonrefundable Personal Tax Credits
Chapter 9: Tax Planning
1. The Direction Your Planning Should Take
2. US Foreign Account Filing Requirements
Table 23: Comparison of Form 8938 and FBAR Requirements
3. Tax Planning Ideas
4. An Overview of the Tax Benefits of Moving to the US
Chapter 10: Canadian and US Death Taxes
1. Canada’s Death Tax: Deemed Disposition of Property
2. Gift Tax in Canada
3. Probate in Canada
Table 24: Court Probate Costs
4. US Death Taxes
5. US Foreign Trust Rules
Chapter 11: Tax for Americans Living in Canada
1. US Citizens
2. Green Card Holders
3. Surrendering Your Green Card
4. Substantial Presence Test
5. Residency Starting and Ending Dates
6. Foreign-Earned Income Tax Exclusion
7. Owning Real Estate in the US
8. Foreign Trust Rules
Chapter 12: Americans in Noncompliance with the IRS
1. Ways of Becoming a US Citizen
2. Reporting of Foreign (Non-US) Bank and Financial Accounts
3. Offshore Voluntary Disclosure Program
Resources
Publications and Useful Readings
Handy Form Names and Links
Canadian Health Insurance
Acknowledgments
About the Authors
Notice to Readers
Self-Counsel Press thanks you for purchasing this ebook.
Chapter 1
Before You Go to Canada
Assuming you decide Canada is the right place for you and you’re not already resident, before you move to Canada, you need do a lot of planning. Just moving across town you have to think about what to take and what to leave behind. You have to think about how to notify everyone of your new phone number and mailing address. You have to decide about packing and physically moving your belongings, and whether to do it yourself or hire a moving company.
When moving to a new country, the issues are exponentially more complex. You may think about immigration, applying for health insurance, and obtaining a tax ID number. Unfortunately, tax planning is typically ignored or postponed until it is too late.
1. Planning Your Move
Canada provides a number of good resources that will help with your move, but before you look at those resources you must consider the implications of leaving the US.
From a tax perspective, there are three broad categories that people fall into when leaving the US and each has different tax ramifications. The categories are US citizens, long-term permanent residents (green card holders), and anyone that is neither a US citizen nor a long-term green card holder. A long-term permanent resident is defined as a person who has been a “Lawful Permanent Resident,” also known as a green card holder, for at least 8 out of the last 15 years.
Note: The definition of a long-term resident is very precise and applies only to green card holders. Therefore you can be in the US for 10, 20, or more years using a Visa and you would never be considered a long-term permanent resident.
The easiest category from a tax perspective is that of US citizens that continue to retain their US citizenship when they move out of the US. As a US citizen, you simply need to do some tax planning before you move. We will talk about tax planning and expatriation later in this chapter.
If you are not a US citizen and are not a long-term green card holder, you are required to obtain a Certificate of Compliance, also known as a Sailing Permit, before leaving the US. To get a Certificate of Compliance, you must go to a local IRS office between two and four weeks before leaving the US. You must file either the Form 2063 tax statement (short form) or the Form 1040-C tax return (long form) and take it with you to an IRS office to obtain a Certificate of Compliance. The certificate cannot be issued more than 30 days before you leave. If you are married, you each must receive a clearance certificate; therefore you and your spouse must each file one of the forms and go to the IRS office.
Form 2063 is the short form that asks for some basic information, but does not compute the tax due. You are qualified to use the short form if you have filed a least one tax return (and paid tax, if applicable) in the US, and are an —
• individual who had no taxable income during the year up to the date of departure, or
• individual who had taxable income during the year or preceding year and “whose departure will not hinder the collection of any tax.” If the IRS has information indicating that you are leaving to avoid paying tax, you must file Form 1040-C and pay th