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Cross Border Taxation => US-Canada Tax Questions => Topic started by: dsugar on January 30, 2019, 12:04:55 PM

Title: Guidelines for US to Canada move
Post by: dsugar on January 30, 2019, 12:04:55 PM
My wife and I are dual US/Canadian citizens currently living in California. We are selling our house in California and moving to and purchasing a house in Victoria this summer. We are selling our California house prior to moving, and the purchase of the Victoria house will probably be completed before we move (assuming we find something).

Are there any general guidelines of things to do or avoid pre/post move from a tax perspective?

Here's what I'm aware of currently:
- For investments in our US taxable account we will transfer them in-kind to a Canadian brokerage shortly after moving.
- We will avoid Canadian mutual funds due to FATCA compliance.
- We will avoid setting up a TFSA account in Canada due to US tax treatment.

Is there anything else along those lines that will make filing our US and Canadian taxes easier going forward?
Title: Re: Guidelines for US to Canada move
Post by: Phil Hogan, CPA, CA, CPA (Colorado) on February 08, 2019, 04:00:17 PM
Hi there

It can be difficult to hit all the tax planning items without gathering all related fact, however let me give you some guidance below:

- You US taxable accounts will be re-valued for Canadian purposes. You'll want to print off some snapshots of the fair market value of the individual securities to ensure you can adjust each security's ACB to FMV upon arrival

- Yes, best to avoid Canadian mutual funds and TFSA accounts once in Canada. However some mutual funds do provide PFIC reporting that allow US clients to hold Canadian mutual funds while in Canada

- Easiest to sell the California home before you enter Canada

- Might want to review securities with losses that may end up being taxable in Canada is they increase in value and are sold after entry

- IRA accounts could be converted to ROTH IRA accounts. This can be beneficial if you tax rate in the year of entry is relatively low.

Hope that helps.