Border Guide: The Ultimate Guide to Living, Working, and Investing Across the Border

by Robert Keats

Overview

Now in its twelfth edition, this book is the definitive guide to everything financial for those living a cross-border lifestyle in Canada and the US. If you are a Canadian living seasonally or year-round in the US, a US citizen living in Canada, or if you have financial assets in both countries, this book can save you time, money, and headaches. Updated for recent changes to cannabis laws and the United States-Mexico-Canada Agreement, the strategies outlined here will help you adopt the ideal traveling lifestyle: crossing in either direction whenever you want, for whatever time period you want, free from worry and funded by substantial tax reductions. The strategies in this book will also give you access to both US and Canadian medical coverage for the rest of your life! Learn how to legally reduce both Canadian and US taxes, protect your assets from fluctuating exchange rates, eliminate stress during border crossings, operate your business from either side of the border to your best advantage, and make investments free from both income and estate taxes. The book also includes an exclusive kit of downloadable materials: information on choosing a cross-border financial planner; lists of free, useful publications; lists of embassies and consulates; and much more!

Product Details

ISBN-13:	9781770403222
Publisher:	Self-Counsel Press, Inc.
Publication date:	07/04/2019
Series:	Cross-Border Series
Edition description:	Twelfth edition
Pages:	392
Sales rank:	816,878
Product dimensions:	5.90(w) x 8.90(h) x 0.90(d)

About the Author

Robert Keats, CFP (US and Canada), RFP (Canada), MSFP, is an internationally renowned expert on cross-border financial planning. He is contributing editor to The Canadian MoneySaver. Keats began his financial planning career in 1976 and is president and a major shareholder of the largest financial advisory firm specializing in Canada/US cross-border financial planning. He has offices in Arizona, Florida, and Alberta.

Table of Contents

Acknowledgments xv

Introduction xvii

1 The Swinging Door 1

Creating the Most Amazing Cross-Border Lifestyle

Choose Your Cross-Border Lifestyle 2

An Introduction to Personal Cross-Border Financial Planning 3

The Frequent Traveler Status 4

How Long Can Canadians Remain in the US? Important New Rules 5

Visitor Rules Applied 6

Summary of the Facts 10

Effortless Border Crossings 12

The Border Kit 16

Red Flags when Crossing the Border 17

Immigration Rules Are Not Tax Rules, and Vice Versa 18

Cross-Border Q&A 19

2 Keeping the Tax Man Away from Your Swinging Door 25

IRS Tax Filing Rules for Vacationers, Snowbirds, and Settlers 25

The US Estate Tax Rules for Vacationers and Snowbirds 28

Provincial Medicare Rules 29

Where to Live or Winter in the US 30

Popular Cross-Border Misconceptions 34

3 The Value of a Buck: How to Beat the Exchange Rate Blues 38

Eliminating the Exchange Rate Blues 39

Hedging Your Bets 42

No Exchange Loss If You Convert Canadian Dollars Now 43

What Can You Expect If You Invest in the United States? 46

Where Is the Best Place to Exchange Money? 48

4 The Taxman Cometh: Cross-Border Tax Planning 53

Taxing Vacationers and Snowbirds 53

Dual Citizens and Green Card Holders Resident in Canada 56

Voluntary Disclosure 58

US Tax Legislation Concerning Expatriation from the US 62

Non-Resident to Resident in the US for Income Tax Purposes 65

The Substantial Presence Test 65

The Closer Connection Exception 67

What Is the Canada/US Tax Treaty? 69

Canada and the US Do Exchange Taxpayer Information 79

Who Must File Tax Returns in the US? 80

How and When to Apply for a US Social Security or Tax ID Number 84

Canada and the United States: Income Tax Comparison 89

Cross-Border Q&A 95

5 You Still Can't Take It With You: Non-Resident Estate Planning 113

The US Non-Resident Estate Tax 116

The Taxable Estate 117

US Federal Estate Tax 117

Determining US Estate Tax Exemption 119

How to Avoid The US Non-Resident Estate Tax 121

Joint Property Ownership with Children 123

Have an Insurance Company Pay the Tax 124

Establish Appropriate Trusts 125

Use Exempt US Investments 126

Use a Canadian Holding Company 126

Sell Your Property and Rent 126

Estate Tax Concerns in Individual States 127

Is Your Canadian Will Valid in the United States? 127

Living Trusts: A Simple Solution to Problems with Wills 131

Power of Attorney: Should You Have One? 133

What Happens If You Die in the United States? 134

What Is a Gift Tax? 135

Creating or Receiving a Cross-Border Inheritance or Gift 136

Cross-Border Q&A 137

6 Doctor in the House: Getting the Most from Out-of-Country Medical Coverage 149

Medical Coverage for the Most Amazing Cross-Border Lifestyle 155

Insurance for Canadians Moving to the United States 157

What Happens If You Get Sick in the United States? 159

Cross-Border Q&A 160

7 Take the Money and Run: An Investor's Guide to the United States 166

The Investment Options 167

Understanding Investment Risk 175

The Rewards of Global Investing 178

Choosing an International Investment Manager 180

Cross-Border Q&A 184

8 Coming to America: Moving to the United States 189

How to Become a Legal Resident of the US 189

Immigration Categories 191

Derivative Citizenship: Are You a US Citizen? 201

Applying for US Citizenship 204

Dual Citizenship: Is It Possible? 205

The Green Card Lottery 207

Legal Retirement in the US 207

Canadian Residents Holding Green Cards 209

Marriage to a US Citizen 211

What to Do If You Are Refused Entry to the US 213

Cross-Border Q&A 214

9 The Grass is Always Greener: Canadian versus US Taxation Policies 228

Keep More of Your CPP/QPP and OAS 229

Interest Income-Tax Free, If You Wish 231

Pensions: Partially Tax Free 233

Employment Income 235

Capital Gains 236

Dividends 238

Alimony 239

Total Income: The Real Comparison 239

Moving to the US to Change Employment 240

Canadian Non-Resident Withholding Tax 243

Foreign Tax Credits 245

Cross-Border Q&A 247

10 A Cross-Border Lottery: Don't Forget to Turn: In Your Ticket 256

Withdraw Your RRSP Tax-Free on a Net After-Tax Basis 256

Settlers: Don't Leave Home without Your RRSP 257

Ten Key Reasons to Remove Your RRSP from Canada 259

Cashing in Your Lottery Ticket Equivalent RRSP 265

Breaking the Lock on Locked-In RRSPs 268

Registered Education Savings Plans (RESPs) 270

Cross-Border Q&A 271

11 Don't Let the Tax Door Hit You in the Behind on the Way Out: Dealing with Departure Tax 277

What Is a Departure Tax? 277

Tax on Exiting Canada 278

Canadian Departure Checklist 281

Transferring Your Credit Rating to the United States 283

US Estate Planning 285

Cross-Border Q&A 288

12 There's No Place Like Home: Returning Residents 291

Immigration to Canada 292

Giving Up Your US Citizenship or Green Card 292

Investment Gains and Income 293

US Retirement Plans 295

US Stock Options, Bonuses, and Deferred Compensation 297

US Social Security 298

Canadian OAS and CPP/QPP 298

Canadian Foreign Reporting 299

United States to Canada - Your Estate Plan 299

Medical Coverage 301

Deductions Lost 302

Cost of Living Adjustments 303

US Departing Alien Income Tax Return 303

Canadian Pre-Entry Review 304

Cross-Border Q&A 305

13 Moving To Canada, EH: US Citizens or Residents Moving to or Investing in Canada 312

Americans Purchasing Property and Investing In Canada 312

Immigrating to Canada 317

When Do You Pay Taxes in Canada? 320

Cost Bump On Property upon Immigrating to Canada 321

Important Tax Concerns for Americans Moving to Canada 323

Converting Your US Estate Plan to a Canadian Estate Plan 325

Unique Tax Filing Requirements for US Citizens in Canada 327

Other Points to Consider 333

Cross-Border Q&A 334

14 Give My Regards to Wall Street: Investing as a US Settler or Resident 337

Investment Priorities 338

15 Social Security and Medicare: The Art of Double Dipping 343

Maximizing Social Benefits When Moving to the US 343

US Medical Coverage 345

Applying for US Social Security 348

Avoiding the Windfall Elimination Provisions 349

Cross-Border Q&A 353

16 Taking Care of Business: How Small-Business Owners Can Reap Huge Rewards 364

A Canadian Corporation Can Assist with US Immigration 365

How to Take a Capital Gains Tax Holiday 365

Operating a Canadian Corporation as a Settler/US Resident 369

US Estate Tax Considerations for Business Owners 371

Final Comments on Cross-Border Businesses 372

Download Kit 373