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Cross Border Taxes

US Tax on Your Canadian Investments

Canadian residents who emigrate from Canada are generally deemed to have disposed of their capital property equal to the fair market value on the date of emigration, with any resulting gain or loss subject to Canadian tax (“Departure Tax”). For Canadians emigrating to
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Need an ITIN?

With the new Individual Taxpayer Identification Number (ITIN) processing rules issued by the IRS in 2012, getting an ITIN will now require you to submit a copy of your Canadian passport certified by the Canadian government. If you cant make it to a Passport Canada office, then
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Sale of Canadian Home by an American

We recently received a call from a U.S. citizen married to a Canadian citizen. The couple lives in Canada and owns a home in Toronto together. Recently, the couple sold their Canadian home, which has been their primary residence for the last 11 years. The couple had purchased the
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Selling America by the Loonie

With the strong Loonie, there’s a lot of Canadians investing in US real estate. But US real estate is not the only investment Canadians are making south of the border. A lot of Canadians are investing in US brokerage accounts to buy and hold US securities. Believe it or
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Are My RRSP Contributions Deductible in the USA?

A while back, we published a newsletter on deducting 401(K) contributions for purposes of Canadian taxation. Now we turn our attention to whether or not contributions to an RRSP are deductible for purposes of US taxation. Praneil is a dual US-Canadian citizen who has been living
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US Tax on Inherited Canadian Property

Question: I am a US resident and my parents back in Canada left some property for me in Canada when they died in early 2012. I sold the property in 2012. What are the tax consequences of inheriting and selling this Canadian property? Answer: You will potentially need to report
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Cross Border Tax & Financial Planning

Temporary and permanent cross-border movements increase not only your tax complexity but also the complexity of your investment management and financial planning. Poorly managed cross-border relocation can result in a disjointed financial plan, which can result in increased
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Are Your 401(K) Contributions Deductible in Canada?

You might recognize this situation. You are a Canadian resident working in the USA on a TN visa. Your employer offers a 401(K) plan that includes a matching contribution. You know contributing to the 401(K) plan lowers your taxable income in the USA. Does the same hold true for
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How a TFSA is Taxed In the US

In Canada, the Tax Free Savings Account (TFSA) allows qualified individuals to be able to earn income on a tax-free basis. In particular, the initial amount contributed as well as income earned in the plan is tax free, even when it is withdrawn. While this may be appealing to
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Do I Pay U.S. Taxes on My RRSP Withdrawal?

Does this situation sound familiar? You moved from Canada to the U.S and became a U.S tax resident. When you left Canada, you also left your RRSP account open. If you are like many Canadian ex-pats who have left their RRSP’s behind to grow tax free in Canada, then you may
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