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

by Robert Keats

Overview

Cross the Border with Confidence! 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 most amazing, ideal crossborder lifestyle. Imagine your own virtual private swinging door on the Canada/US border that allows you to go through in either direction whenever you want, for whatever time period you want, free from worry and funded by substantial tax reductions. Plus it will 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 • Make investments that are free from both income and estate taxes • Use proven tools to eliminate both the Canadian "death tax" and US estate taxes • Remove your RRSP and other registered plans from Canada at very low or no net income taxes using proven cross-border tools • Use the Canada/US Tax Treaty to greatly save money and reduce taxes on the sale of your business The included, exclusive kit of downloadable materials includes: • Choosing a cross-border financial planner • Lists of free, useful publications • Lists of embassies and consulates • — And much more!

Product Details

ISBN-13:	9781770407640
Publisher:	Self-Counsel Press, Inc.
Publication date:	09/01/2019
Series:	Cross-Border Series
Sold by:	Barnes & Noble
Format:	eBook
Pages:	392
Sales rank:	815,316
File size:	6 MB

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. T he 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. K eeping 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. T he Value of a Buck 38 How to Beat the Exchange Rate Blues Eliminating the Exchange Rate Blues 39 Hedging Your Bets 42 No Exchange Loss If You Convert Canadian Dollars Now 43 vi THE BORDER GUIDE What Can You Expect If You Invest in the United States? 46 Where Is the Best Place to Exchange Money? 48 4. T he Taxman Cometh 53 Cross-Border Tax Planning 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. Y ou Still Can’t Take It with You 113 Non-Resident Estate Planning 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 vii CONTENTS Creating or Receiving a Cross-Border Inheritance or Gift 136 Cross-Border Q&A 137 6. D octor in the House 149 Getting the Most from Out-of-Country Medical Coverage 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. T ake THE Money and Run 166 An Investor’s Guide to the United States 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. C oming to America 189 Moving to the United States 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. T he Grass Is Always Greener 228 Canadian versus US Taxation Policies 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 viii THE BORDER GUIDE 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. D on’t Let the Tax Door Hit You in the Behind on the Way out 277 D ealing with Departure Tax 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. T here’s No Place Like Home 291 Returning Residents 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 ix CONTENTS 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. M oving to Canada, Eh 312 US Citizens or Residents Moving to or Investing in Canada 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. Giv e My Regards to Wall Street 337 Investing as a US Settler or Resident Investment Priorities 338 15. S ocial Security and Medicare 343 The Art of Double Dipping 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. T aking Care of Business 364 How Small-Business Owners Can Reap Huge Rewards 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