Hello from Newb

Ed, try linking to Financial Webring.com, it is a Canadian site similar to this one where you may pose your question.

Altared is the reverse, he is a Canadian living in Texas taking a job away from an American, and he is an Albertan in the Oil Patch.

[steinj]

Ed, I know alot about cross border issues - born in Canada, moved to US, moved to Europe, moved back to Canada. The IRA is perfectly fine to leave in the US and is covered under the Canada US tax treaty. Your earnings in the plan are tax deferred so just leave it alone. The corporation issue is much trickier because the US will consider it a "foreign controlled corporation" and the paper work is onerous. An alternative would be to incorporate as a US company operating in Canada. You can go the Canadian corporation route but this needs to be done carefully. We found a good accountant in Toronto who specializes in this stuff - if you check on line you'll see there are 2 or 3 that come up all the time on cross broder taxation.

Jo Jo

[bosco]

Quote:

Originally Posted by JoJo Girl Ed, I know alot about cross border issues - born in Canada, moved to US, moved to Europe, moved back to Canada. The IRA is perfectly fine to leave in the US and is covered under the Canada US tax treaty. Your earnings in the plan are tax deferred so just leave it alone. Jo Jo

This is good advice. There are a couple of caveats. If you have any rollovers you want to do (say 401k or 403b to IRA) do them before you are landed. Canada will consider the rollovers taxable events. Similarly, although these defererrals are recogized by Canada once in-place, contributions to 401k's or 403b's might not if made at a time when you are considered a tax resident of Canada (don't know if your employer is paying you as a US citizen abroad and thus these shelters are presently open to you or not). The other problem is Roths. They are not recogized in Canada and Canada will want to tax you on your earnings. Otherwise, IRAs, 401ks, 403bs etc are ok if left alonel. But whoever told you to check out the Canadian webring gave you good advice.

[AltaRed]

JoJo Girl is right. *CA recognizes the tax protection of IRAs in the US-Can tax treaty just as the US recognizes the tax protection of my RRSPs. I cannot comment on businesses or corporations.

I cannot use an individual's name online without pre-clearance but there is a Partner in PWC n Calgary that is extemely good at cross-border issues and is closer to you than one in Toronto. She may be pricey but she is good.

[Ed_The_Gypsy]

Howard,

Many thanks for the Webringfinancial.com link! I see gummy lives there, too.

The traffic seems to be maybe 10 or 100:1 south to north. In spite of 'shortages', there are damn few Yanks in the north. I work with one and we are the only two in our specialty that I know of. That's OK--I don't need the competition.

Jo Jo,

A thousand thanks, as the Danes say! That solves one mystery. I assume that RRSPs work backwards, too, by tax treaty. I assume you refer to financialwebring?

bosco,

Thanks, too! Roths are a problem, then. I gather that foreign income may be tax-free for the first 5-years of citizenship/landed immigrancy? Maybe 5 years is all I need.

AltaRed,

Another thanks. Feel free to PM me.

I am going to do some lurking tonight!

Ed The Gypsy,
Cooking jambalaya at home just now.

[nfs]

Ed, you might want to read http://www.financialwebring.com/foru...topic.php?t=17

P.S. Where do you get decent andouille in McMurray?

[bosco]

Quote:

Originally Posted by Ed_The_Gypsy Thanks, too! Roths are a problem, then. I gather that foreign income may be tax-free for the first 5-years of citizenship/landed immigrancy? Maybe 5 years is all I need.

Ed,

landed immigrancy/citizenship is not the issue. Tax residency is the issue. I suggest you google up the US/Canada tax treaty and read it (I know...boring). It is a complex topic, but there are several things that can cause the Canadian government to consider you a resident for tax purposes. And yes, you can be a resident of 2 places at once for tax purposes.

As you are probably already aware, if you are a US citizen, the US government requires you to file a tax return on your WORLDWIDE income, regardless of where you reside (one of only a couple countries in the world that require this). The Canadian government considers your residency, regardless of your citizenship or immigration status for tax purposes. The treaty between the 2 countries determines which place gets first dibs on your taxes. Taxes paid in one country are credited in the other up to a limit (I think it is still $80,000/year but might have changed).

However, certain events (some of which are in my previous post) are considered taxable events in Canada but not in the US. Earnings on Roths are one example.

I strongly suggest you consult a cross-border accountant if you are working in Canada, no matter who cuts your paycheck. For one thing, there is the "sojourner rule" which states that if you are in Canada for 183 days in a year, they can tax you no matter what your immigration status or residency. I think there are some exceptions to this, however, if you were hired in the US and working for an American company. I'm no expert in this stuff, just have had to learn some of it to cover my own a$$.

I just consulted with a tax attorney and an accountant a couple weeks ago going over this stuff because my situation is somewhat pathological. Much can be avoided with some pre-planning. If you own a house in Canada, or have professional registration of some kind, it gets tougher.

Bottom line is--plan ahead. If you need a referral to a suitable accountant, PM me.

Bosco

[Ed_The_Gypsy]

nfs,

Thank you for the link.

Quote:

P.S. Where do you get decent andouille in McMurray?

Can't. My colleague is about ready to smuggle it up from TX, squeezed between the crawfish. I am advising, no--where you gonna put the Colt? Now, down in Edmonton, go to Da-De-O's on Whyte. Satisfactory jambalaya and gumbo (when the steam table is hot enough). Forget the bread pudding. Proper hot sauce--mild--on the tables. Two, three other Cajun restaurants in Edmonton area. Don't bother.

I am home in Bellingham tonight, watching the lights out back down to the bay. We can't get it here, either. Substitute kielbasa. Don't buy it too lean or you will have to use oil to keep it from burning.

Back north Sunday night.

Bosco, I will have to contact you later. Got to put up shelves now.

Ed

[unclemick]

Heh heh heh

I thought I was the only one - who used 'good Polish sausage' in Jambalaya!

Step daughter in spare room doesn't like it - OR Jambalaya - WILL use mild Italian often in her Red Beans and rice.

So much for cross border tax issues!!!!

[nfs]

Quote:

kielbasa ... mild Italian

Aaaaaaaaaaaaaaaaaaaaarrrrrrrrrrrrrrrrrrrrrrrrrrrgg gggggggggggggggggghhhhhhhhhhhh!

Even though I live in a quaint Canajun backwater, I can get decent andouille here. If you call them, I'll bet they'd be happy to freeze some and send it Westjet cargo to McMurray for you, Ed.

Meanwhile, mick, you've got no excuse at all. Does your stepdaughter substitute something for the hocks in the red beans too?

Aaaaaaaaaaaaaaaaaaaaarrrrrrrrrrrrrrrrrrrrrrrrrrrgg gggggggggggggggggghhhhhhhhhhhh!

[Ed_The_Gypsy]

nfs, I could hear that groan from here! (Back in Edmonton tonight.)

Many thanks for the Galloping Goose Sausage link ( )!*

So near and yet so far.*

I e-mailed them to see if
a) they can send it to Ft. Mac, or
b) if I can bring it across the border to B'ham (not holding my breath).

Hmm. Da-De-O's must get theirs somewhere. Shoulda thunk about that.

I will give an update when I hear from them.

Cheers,

Ed

[unclemick]

Hmmm

What about the 'when in Rome' thing - like what's the Canadian version of stew - er ah Gumbo

heh heh heh

[Ed_The_Gypsy]

Answers from GG Sausage:
Yes, they can send it to Ft. Mac. Price about doubles.
No, can't take it across the border.

UM2,

Well, I had moose chili at a cook-off at work a couple of weeks ago. Different, but not enough to send me out gunning for moose.

I am told that the food at Ft. Mac is strongly influenced by the Nufies (Newfoundlanders). Fried fish, fried everything, they say. Doesn't hold a candle to Mississippi, though, where I found fried pickles in the breakfast buffet. Happy to get fish way up here.

Alberta beef tastes pretty good to me.

Popular ethnic foods out here are donairs, pirogies and samosas. All are a llittle greasy. Donairs are a little like gyros with a runny, greasy red sauce that gives me heartburn. I prefer gyros by far. Pirogies are little Ukranian pastries with cabbage/cheese/potatoes eaten with sour cream. Samosas are little tri-corner fried pastries with Indian spices. Out east, there are other local specialties.

Cheers,

Ed

[Ed_The_Gypsy]

I bought and read "The Border Guide", by Keats.

Taking Keats at face value,
First, this business is--or can be--very complicated.
Second, Canadians working in Canada pay more taxes than I would working in the US.
Third, Yankees working in Canada pay more taxes than Canadians working in Canada, partly because it is harder for us to take advantage of things like small businesses to offset expenses from income.
Fourth, it looks like it is much better for Canadians to retire in the US.* In fact, it looks like no-one should retire in Canada, if they have a choice.* I would like to hear from Calgarygirl on this.

Ya gotta like the place.* Otherwise, why would you work here?

I am still studying this cross-border stuff.* Thanks to those who suggested accountants.* I am starting to sort out my 2005 taxes.* Ugh.

Cheers,

Ed

unclemick, the Canadian version of Stew is Stew, basic same recipe brought over by our Immigrant ancestors, you know the ones that came from the same place as yours??

I add some Sherry to mine, use good quality Beef,try not to overdue vegetable varieties, served with warm bread, Australian Shiraz, while looking at gently falling snow and reminding myself how fortunate I am that this great country let me call it Home.

Go Jays , any team in '06 except the Yankees.

[steinj]

Ed - Canadians and many others are much better off retiring in Canada or alternatively 6 months in Canada and 6 months in a cheap warm place (read: Thailand, central america etc. ). Why? Because:
1. National health care
2. Structure income for minimum taxes e.g. dividends, trusts, tax deferred accounts
3. Canada Pension Plan is in good shape unlike US social security
4. If you live in Canada a certain number of years you are eligible for old age security.
5. Cottage country here is cheap and beautiful

Need I say more?

JoJo

[Ed_The_Gypsy]

JoJo Girl,

Quote:

1. National health care 2. Structure income for minimum taxes e.g. dividends, trusts, tax deferred accounts 3. Canada Pension Plan is in good shape unlike US social security 4. If you live in Canada a certain number of years you are eligible for old age security. 5. Cottage country here is cheap and beautiful

1.* Very attractive, most assuredly.
2.* Vital!* Except, I haven't learned about this yet.
3.* Doesn't matter to me.* For good or ill, SS is what I have.* I plan for 70% of quoted benefits.*
4.* I will be dead.* Also N/A.
5.* Truly beautiful, agreed.* However, I have to find out more about the cheap part.

You may have figured out that I have to look at it from my perspective.* Things that make perfect sense for a Canadian may not work very well for me.

It would be a big mistake to make long-term commitments without a clear plan.* I have more reading to do, but any suggestions would be very welcome.

(Maybe this should be a separate thread?)

Cheers,

Ed, now at The Fort, where it will be -26C later tonight.

Yeah Ed, but no Mosquitoes eh?

God I love this country, especially in the winter, a white paradise with so many things to do.

[bosco]

Quote:

Originally Posted by Ed_The_Gypsy 3. Doesn't matter to me. For good or ill, SS is what I have. I plan for 70% of quoted benefits. Ed, now at The Fort, where it will be -26C later tonight.

not necessarily.

There is an agreement between Canada pension and social security. You have options. You can convert one into the other in many cases. This is an issue worth looking into. I intend to when the time comes.

[Ed_The_Gypsy]

bosco,

Thanks again.

Something else I have to research. :P

Cheers,

Ed