Canadian Life Style

Canada-US taxes

DUAL CITIZENSHIP …WHAT TRIGGERS TAXES IN BOTH COUNTRIES IS DIFFERENT.

THE US TAXES ARE ON WORLDWIDE INCOME AND IT IS BASED ON BEING A US CITIZEN. 

CANADA TAXES ARE  BASED ON RESIDENCY. IF YOU ARE SPENDING 6 MONTHS + 1 DAY IN CANADA YOU ARE ACTUALLY A RESIDENT. CANADA DETERMINES WHICH COUNTRY BY LOOKING AT THE COUNTRY IN WHICH YOU HAVE CLOSER TIES. WHERE DO YOU WORK, WHERE ARE YOUR DOCTORS…WHERE IS YOUR MEDICAL INSURANCE, WHICH COUNTRY IS YOUR CAR REGISTERED IN AND YOUR DRIVER’S LICENSE. YOU CAN’T BE A RESIDENT IN MORE THAN ONE COUNTRY. SO IF YOU ARE DECLARED A RESIDENT OF CANADA TAXES ARE AUTOMATICALLY TRIGGERED.  THEN YOU OWE TAXES IN BOTH COUNTRIES. 

CANADA DOESN’T NOT HAVE CAPITAL GAINS ON YOUR REAL ESTATE SALES. BUT AMOUNT OF PROFIT IS BASED ON THE VALUE OF THE CANADIAN DOLLAR AND THE US DOLLAR WHEN PURCHASED AND SOLD. I HAVE TALKED WITH CANADIAN/AMERICANS WHO HAD TO PAY TAXES ON PHANTOM MONEY. THEY NEVER HAD. IT ONLY EXISTED IN THE CALCULATIONS. IT AMOUNTED TO THOUSANDS OF DOLLARS OF TAX.

BE CAREFUL. GET GOOD LEGAL ADVISE BEFORE YOU MAKE A MOVE.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s