Tax Planning for Canadians Living a Cross Border Lifestyle
Canada to USA was established to provide a trusted one stop resource to comprehensive cross border tax planning for Canadians living a cross border lifestyle. We highly recommend speaking to our cross border tax experts to ensure you have a well structured cross border financial plan to eliminate any current or future tax issues.
THE CROSS BORDER LIFESTYLE
Some clients dream of retiring in the south. Others yearn to own a home in the sun to which they can repeatedly return. Owning a vacation property south of the border can provide a strong sense of stability and comfort to Canadians travelling in seek of relaxation and a break from harsh weather and the chores of daily life. Our goal is to ensure that clients’ ownership of U.S. vacation property remains as stress-free as possible. We assist clients by working to alleviate the tax and legal implications of a cross border lifestyle.
OWNING U.S. REAL ESTATE
Canadians who own U.S. property may also be subject to U.S. estate tax. This tax is based on the fair market value of all U.S. assets owned at the time of death. It can climb up to 40% depending on the value of the U.S. asset and the value of the worldwide estate. Only Canadians who exceed the worldwide estate exemption are subject to U.S. estate tax. This exemption varies with inflation and can change drastically when new laws are passed in the U.S. In order to eliminate or minimize the burden of U.S. estate tax, incapacity hearings and probate, our team may recommend that clients own U.S. property other than in their personal names, such as in a Cross Border Trust.
OWNING U.S. REAL ESTATE
Canadians who own U.S. property may also be subject to U.S. estate tax. This tax is based on the fair market value of all U.S. assets owned at the time of death. It can climb up to 40% depending on the value of the U.S. asset and the value of the worldwide estate. Only Canadians who exceed the worldwide estate exemption are subject to U.S. estate tax. This exemption varies with inflation and can change drastically when new laws are passed in the U.S. In order to eliminate or minimize the burden of U.S. estate tax, incapacity hearings and probate, our team may recommend that clients own U.S. property other than in their personal names, such as in a Cross Border Trust.
