[CFA82]

I'm wondering if anyone has a good Canada-US tax advisor to recommend. I wish to apply for permanent resident status in Canada, but I understand that the US imposes hefty tax penalties on American citizens residing in Canada. I am retired, as is my spouse who has dual Canadian-US citizenship. Thanks!

 

[Bevdeforges]

There are no "tax penalties" as such on Americans living in Canada (or anywhere outside the US). The deal is simply that, no matter where you live, you are always going to be subject to US taxation (until and unless you formally renounce - which has other ramifications). The issue becomes one of interpreting the relevant tax treaty (US-Canada in your case) to try to figure out how to invoke the appropriate protections against double taxation.

You will be expected to report all "foreign" (i.e. non-US) bank accounts and investments, and there are additional forms to file for certain types of dead-normal "foreign investments" - but these are the same for US citizens living in the US if they choose to invest outside the US. The real "penalty" is simply the complexity of the reporting requirements, not an actual tax penalty. (But yes, it's still annoying as it can be.)
Cheers,
Bev

 

[CFA82]

Thanks for your encouraging reply, Bev. I'm hoping that someone can recommend a cross-border tax specialist with whom they've worked on US-Canadian tax issues.

 

[Bevdeforges]

If you can't find a "cross-border" tax adviser, you may do well to find a US tax preparer/adviser with extensive experience handling expat returns. Be aware, though, that any reputable tax adviser will tend to be quite conservative with their approach to your returns. For both their own protection and for yours.
Cheers,
Bev

 

[CFA82]

Tax advisor recommendations

Thanks, and of course I would want an accountant who is aware of tax law in the US and Canada and whose advice is in accordance with those laws. I'm simply asking for recommendations of cross-border tax specialists from people who have used them.