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Canada/US Cross Border Issues


randomep
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Hi I see a lot of Canadian and Americans on this site. So I think this

is a good topic.

 

Do you have experiences to share about

border crossing issues, or taxation issues or social

benefits issues across the border.

 

For example:

- do you have 401k and plan to live or retire in Canada?

  and vice versa for RRSP.

- do you have brokerage accounts in both countries?

- do you collect benefits in one country and live in the other? if so how

  do you handle taxes?

- have you collected UI from US while living in Canada (and the government

  knows) and vise versa

- if you don't work do you vacation in one for long period country and reside in the other?

 

 

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I lived in the States for a few years before returning to Canada with an American wife. (She's now a dual citizen; I'm still a pure-breed Canadian).

 

- do you have 401k and plan to live or retire in Canada?

- do you have brokerage accounts in both countries?

Our 401ks were rolled into Vanguard IRAs when we left our US employer. In 2008 we got polite letters from Vanguard informing us that while they were still happy to keep our money, they could no longer allow us to place trades in those accounts (so our positions were frozen unless we wanted to liquidate to cash and hold that for 30 years until retirement). This is apparently a common issue among US brokerages... most of them will not allow non-residents to make trades due to regulations I've never fully understood. Last year, I discovered that TD Ameritrade is an exception to that, presumably thanks to its Canadian parent company. So after switching brokers, I can now happily trade within our IRA accounts again.

 

Yes, I expect I'll probably retire in Canada, but who knows.

 

No experience collecting benefits. I'd be surprised if either country would allow non-residents to collect UI, but I'm certainly no expert.

 

This year, for the first time, I am actively seeking out professional cross-border tax advice, due mainly to the new regulations going into effect this year (FATCA) that target American expats via foreign financial institutions (like Canadian banks), and the potential financial and privacy implications those regulations have for myself and our children. I'm finding it difficult to find a personal tax accountant who knows both US and Canadian tax law.

 

http://www.cbc.ca/news/canada/u-s-fatca-tax-law-catches-unsuspecting-canadians-in-its-crosshairs-1.2493864

 

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I lived in the States for a few years before returning to Canada with an American wife. (She's now a dual citizen; I'm still a pure-breed Canadian).

 

- do you have 401k and plan to live or retire in Canada?

- do you have brokerage accounts in both countries?

Our 401ks were rolled into Vanguard IRAs when we left our US employer. In 2008 we got polite letters from Vanguard informing us that while they were still happy to keep our money, they could no longer allow us to place trades in those accounts (so our positions were frozen unless we wanted to liquidate to cash and hold that for 30 years until retirement). This is apparently a common issue among US brokerages... most of them will not allow non-residents to make trades due to regulations I've never fully understood. Last year, I discovered that TD Ameritrade is an exception to that, presumably thanks to its Canadian parent company. So after switching brokers, I can now happily trade within our IRA accounts again.

 

Yes, I expect I'll probably retire in Canada, but who knows.

 

No experience collecting benefits. I'd be surprised if either country would allow non-residents to collect UI, but I'm certainly no expert.

 

This year, for the first time, I am actively seeking out professional cross-border tax advice, due mainly to the new regulations going into effect this year (FATCA) that target American expats via foreign financial institutions (like Canadian banks), and the potential financial and privacy implications those regulations have for myself and our children. I'm finding it difficult to find a personal tax accountant who knows both US and Canadian tax law.

 

http://www.cbc.ca/news/canada/u-s-fatca-tax-law-catches-unsuspecting-canadians-in-its-crosshairs-1.2493864

 

 

Similar if you're a Canadian resident living in the US. If you live in certain states you are still allowed to trade but the state you live in needs SEC approval. If the state doesn't have approval your account will be restricted to sells only.

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You have to declare where you are resident (Canada), & spend < 180 days outside of Canada/year - or lose your Cdn health care.

 

Some Cdn government pension benefits can be paid anywhere in the world, net of Cdn taxes; others are paid only in Canada. No restrictions on private pension payouts.

 

Brokerage/home banking, etc. ONLY where you are resident. KISS principle. You can be clever, but be prepared to prove that you are not a money launderer - & from uncomfortable places.

 

Cdn UI can only be collected in Canada - you are supposed to be looking for work IN Canada. Your entry/exit to the US will be detected, & funds will either not be paid - or clawed back.

 

Flying south for winter, also doesn't mean just flying to Florida.

Lot of folks will rent a place in the Canaries/Spain/Greece/Caribbean for a few months during winter, & increasing in Chile/Argentina/South Africa as well. Currency, house rental, & food  is cheap (in $C terms), the weather is hot, & why bother with Florida - if you can stay in Rio over carnival, or safari in South Africa during Feb/March. Just call home over Skype every now & again.

 

SD

 

 

 

 

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I lived in the States for a few years before returning to Canada with an American wife. (She's now a dual citizen; I'm still a pure-breed Canadian).

 

- do you have 401k and plan to live or retire in Canada?

- do you have brokerage accounts in both countries?

Our 401ks were rolled into Vanguard IRAs when we left our US employer. In 2008 we got polite letters from Vanguard informing us that while they were still happy to keep our money, they could no longer allow us to place trades in those accounts (so our positions were frozen unless we wanted to liquidate to cash and hold that for 30 years until retirement). This is apparently a common issue among US brokerages... most of them will not allow non-residents to make trades due to regulations I've never fully understood. Last year, I discovered that TD Ameritrade is an exception to that, presumably thanks to its Canadian parent company. So after switching brokers, I can now happily trade within our IRA accounts again.

 

Yes, I expect I'll probably retire in Canada, but who knows.

 

No experience collecting benefits. I'd be surprised if either country would allow non-residents to collect UI, but I'm certainly no expert.

 

This year, for the first time, I am actively seeking out professional cross-border tax advice, due mainly to the new regulations going into effect this year (FATCA) that target American expats via foreign financial institutions (like Canadian banks), and the potential financial and privacy implications those regulations have for myself and our children. I'm finding it difficult to find a personal tax accountant who knows both US and Canadian tax law.

 

http://www.cbc.ca/news/canada/u-s-fatca-tax-law-catches-unsuspecting-canadians-in-its-crosshairs-1.2493864

 

 

Similar if you're a Canadian resident living in the US. If you live in certain states you are still allowed to trade but the state you live in needs SEC approval. If the state doesn't have approval your account will be restricted to sells only.

 

Interesting, that's what I love about this forum lots of stuff to learn. I must say with regard to the regulations. There is a big difference between rules (which I am sure if you looked at them all would coutradict each other) and practice. I think the key is to follow the intent of the law and to remember that we don't live in a facist state (although a noticeable minority in America would disagree)

 

With regard to residency there are various categories, resident, non-resident and deemed resident/non-resident. All the banks/brokerages care about is that you comply with their requirement, that you have an address in their country. If you do they don't care how long you stay in their country and so long as you pay your taxes your with the IRS / rev-Canada.

 

And even if you do not have an address in their country a previous poster stated that some brokerages will still let you trade.

 

 

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