Cross-Border Tax Planning
Understanding and minimizing U.S. and Canadian taxes
Cross-border tax planning can be a daunting task, that’s why we take care to assess the ongoing tax implications that are unique to you. Whether that be managing current cash flow and taking advantage of several types of taxable incomes, looking at multiple retirement accounts and determining optimal asset location., or staying up to date on IRS filing requirements. Our team understands the challenges of cross-border tax planning and works with you to ensure your tax obligations are managed according to your unique situation.
Navigate Cross-Border Tax Planning Obligations with Confidence
A move to Canada often brings with it complexities from an annual tax filing standpoint as any U.S. Citizen residing in Canada still have an obligation to file their annual U.S. taxes. You may have questions on certain reporting requirements outlined below:
FBAR filing and reporting (Foreign Bank and Financial Account) applies when at least one financial account is located outside of the United States and the aggregate value of these foreign accounts exceeds $10,000 USD at any time during the calendar year. These accounts include bank accounts, brokerage accounts, mutual funds or financial interest in a certain type of account (corporations, partnerships, limited liability companies (LLC), trusts and estates). The deadline to file any annual FBARs is due by your regular IRS filing deadline of April 15, however, you are allowed an automatic extension to October 15 if you need more time.
While the tax laws differ for real estate transactions in the U.S. and Canada, it is important to be aware of such laws that could impact the amounts of capital gains payable upon the sale or disposition of such property. We commonly come across this when preparing cross-border financial plans. For U.S. citizens living and owning a home in Canada, the difference in laws may affect you. Many are not aware that while living in Canada, U.S. tax law still applies to them. So while you may believe that you could be exempt from paying taxes on the sale of your principal residence, without proper planning you could end up owing U.S. capital gains taxes upon sale.
Answering your Cross-Border Tax Planning Questions
Cross-border tax planning can be a daunting task, request a discovery call with our cross-border financial advisors and begin the process of simplifying your financial life.
Information in this article is from sources believed to be reliable; however, we cannot represent that it is accurate or complete. It is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities. Raymond James advisors are not tax advisors and we recommend that clients seek independent advice from a professional advisor on tax-related matters. The views are those of Plena Wealth Advisors, and not necessarily those of Raymond James Ltd. Investors considering any investment should consult with their Investment Advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decision. Raymond James Ltd. is a Member Canadian Investor Protection Fund.
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