The good bonding that Canadian citizens share with the US citizens cannot be denied, in spite of a long unguarded border between the two nations.
However, cross-border taxation issues bother Canadian citizens. Notwithstanding tax treaties between the nations, each has a different set of tax rules. It becomes difficult to avert tax-traps for Canadians. Let’s shed some light on US tax issues, which Canadians are subject to!
Is a Canadian citizen liable to pay US taxes?
The premise of this blog is US taxes that may impose problems for Canadians. But it’s important to check if a citizen is ‘non-resident alien’ if viewed from an American perspective. International Revenue Codes trigger issues like citizenships, substantial existence in the neighboring nations and permanent lawful residency. Permanent Residency as evidenced by Green Cards triggers serious taxation issues. The problem has lingering imprints. One must seek advice from a US tax consultant in Toronto to get more valuable information.
How to take ownership of the US property?
Canadians are potential investors on US real estates. Canadians make purchases as important investment strategies. Such investments help in capital gains. But the key question is how to claim ownership of the property! There are certain factors to determine ownerships. The sources of funds, the purpose of buying and net-worth of investors are key determinants.
The crux of the whole thing is, there is no immediate solution to claim ownerships.
How should one plan the will for children residing in the US?
The problem arises when a Canadian beneficiary settles in the US soil. The planning of the will becomes too difficult. The critical understanding of income accumulations often bothers Canadian citizens. Proper-structuring of the trust becomes mandatory. This should be done to avoid double-taxation.
What if someone wants to freeze the Canadian business?
Freezing Canadian business in the US soil is difficult. The aim is to maximize flexibility. But retaining control is a real-time problem. This issue is faced by the next generation of families. Families with children residing in the US soil face the music every now and then.
Can shifting to the US soil be difficult?
The US has numerous Canadian migrants. For migrants that are well-off, heavy taxation might not be as much a problem. But middle income households face tax-traps. Life insurance planning does not fit well. These taxation problems need to be mitigated soon.
To come to an end..
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