Moving back to Canada

Newfiegirl71
New Member



Joined: 01 Aug 2008
Posts: 8
Location: Worthington Ohio

Posted: Fri Aug 01, 2008 9:25 am

 

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Hi, I am looking and hoping to move back home to Canada from the USA around July 2009 - I have a son who is 9 so wanting to stay for 1 more school year. I am looking at Calgary as a place of Residence.

I have many questions. I have lived in the US since 1996 and I miss home so much.

What are some things I should know that you don't normally know until you've moved? So experience movers back to Canada - Tips . Thoughts?

What about investments . Stocks, 401K, Pension . Will I get taxed on it again in Canada? Should I keep it in the US? For how long?

Buying a home - Is it better to wait and rent ? . Because I have no credit history in Canada will buying a home be hard?

Schools? I hear the SW side of Calgary is the best for families and children - what about Schools?

I am org. from Newfoundland so I've never been to Calgary - any and ALL helpful advice and information would be more then welcomed.

I own a home here in the US - when would be a good time to sell it?

I read that it is best to move back and have at least 20K but as a single parent that isn't likely [ ha ha ] . Should I begin a "nest moving egg" ? what is the best way? .

I am anxious and excited to move back but terrified all the same. So any and ALL advice help . would be wonderful.

Jobs? I would LOVE to move there WITH a job already . Software Engineering - IBM Lotus Notes/Domino and MS Exchange/Outlook Systems Administration . what are salarys like for this type of skill/jobs . Is there work?

My car - If I still am making payments on it - can I bring it over the border? Will it need to be paid off ? Am I better off selling it and just buying there when we arrive?

When do I begin registration for School?

OK I have a TONN of questions but I'll stop here and I appreciate any replies and help.

Thanks

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 1589
Location: Calgary

Posted: Fri Aug 01, 2008 11:10 am

 

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Moving is pretty straightforward as a returning resident, you need to fill in CBSA Forms B4 and B4A, your moving company will probably fill them in if they're any good. (Allied are the biggest).

To bring your car back (on B4) you need the title, so yes it needs to be paid off, this requires additional paperwork as well, have a look at www.riv.ca - basically you get a conditional entry to have the headlights sorted at Canadian Tire and then get approval and you need a compliance letter from the US importer/manufacturer to show CBP (you make an appointment in advance, I suggest using Sweetgrass because they don't have a big wait - it's the only entry point to Alberta for vehicle imports). Alberta has a vehicle inspection regime for imported vehicles as well.

There is a shortage of SMTP people in Alberta but I'm not sure how easy it is to get a decent paying position in Calgary, not without travel being involved, all the good-paying jobs require travel to Fort Mac or Edmonton usually. Have a look at www.calgaryitpro.org There are always IT contractors hiring people, but really you need to go to the meetings to chat to people.

Calgary proper is not the best place for schools as there is a chronic shortage of bus drivers and the Province has underinvested in the school system. There is a big building programme underway at the moment but my personal take on it is that the high school system is a total mess and will be for years. One of the best TV ads I've ever seen is the teacher's association ad with all these old geezers going:

"When I was a kid, I had to walk uphill to school, we didn't have a bus."

"There were fifty of us in a classroom."

"Textbooks, ha, we were lucky if we had paper!"

"We never had any heating."

And so on and then this kid at the end goes:

"That sounds just like my school!"

Best advice is not to move to Calgary, move to Chestermere, Airdrie or Okotoks if education is a major priority.



2011, looks like. The housing market has cooled off in Calgary now, but it's nothing like as bad as in the US. Rentals were tight but I think it's getting better now. If you have a credit history in the US it is possible (sometimes) to use it in Canada, you can improve it by using RBC or Harris bank for a credit card in the US right now as they are Canadian owned.

On the tax side of it, it depends largely on what your status is in the US, whether you are a permanent resident or citizen.

If you are a citizen, you must file an annual US tax return (1040) forever in the US until you die (plus you are subject to US estate tax). There is a foreign tax credit in the US for any tax you pay in Canada, but it maxes out around $86,000, so if you earn over that you are subject to dual taxation. There are more tax credits for non-resident US citizens though as well which may help.

If you are an LPR, you have to give it up (but if you do getting it again will be very hard indeed). This means however you don't pay US taxes anymore unless you are subject to expatriation tax (US-source income above $115,000 or so). You file 1040-C to notify the IRS that you left. You cannot remain a US LPR and live in Canada, if you do you will be subject to dual taxation. If you lived in the US for more than 8 out of the last 15 years and gave up LPR status you have to file paperwork with the IRS for the next ten years.

Best to move your tax home on January 1st if you can manage it (doesn't necessarily mean you moved then, it means you moved your principal residence then, although this is tricky under the US rules), because it makes filing your tax return(s) easier the following year as it is a complete year.

Canada doesn't recognise US tax shelters like 401(k) for the purposes of contribution (i.e. you can keep them but that's it, however there may be CGT issues), it does get rather messy although the new tax treaty simplifies it slightly. There is a totalization agreement so your Social Security contributions are recognized in Canada for the purposes of CPP (but not Medicare). IRAs are treated pretty much the same as RRSP under the new treaty, but you still can't contribute to them after you leave (typically, dump your IRA into the same investment you plan to use for your RRSP).
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Steve.

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 1589
Location: Calgary

Posted: Fri Aug 01, 2008 11:14 am

 

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Oh yeah, the healthcare system sucks big time in Calgary. Don't get ill. Not enough doctors.
_________________
Steve.

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Newfiegirl71
New Member



Joined: 01 Aug 2008
Posts: 8
Location: Worthington Ohio

Posted: Fri Aug 01, 2008 11:34 am

 

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Thanks Steve - I see you are in Calgary. I was looking at Schools/places to live in the outer belt not IN the city. So the burbs I guess.
I am a Permanent Resident in the US not a Citizen - I could do Dual right now but do not wish to.
Hmmmmmm So sounds like I may have to give up my car . Moving back doesn't sound fun at all but I want to come back .
Is Edmonton any better? . Though I love everything I have read about Calgary and I have Family [ cousins, aunts uncles etc ] all over Alberta .
Thanks for the links I will go out there and read up. Anything else you think of please let me know.

T

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Skuldpower18
New Member



Joined: 31 Jul 2008
Posts: 9
Location: Calgary

Posted: Fri Aug 01, 2008 1:28 pm

 

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If you're looking for a small town, Airdrie, Didsbury, Cochrane or Okotoks might be places to take into consideration. They're close enough where it should only take about a half hour to 45 minutes drive to reach Calgary. I would not suggest school in Calgary, I attended school in Calgary from grades K-12. It wasn't the best experience, kids aren't as friendly as they used to be, and they tend to be very disruptive. The Calgary classroom isn't what I would consider ideal.

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 1589
Location: Calgary

Posted: Mon Aug 04, 2008 9:53 am

 

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Bear in mind if you do that you basically have to give up PR status when you move to Canada to avoid dual taxation - and if you do that getting it again will be very hard. The flip side is that if you do get US citizenship then you have to file taxes there forever and if you earn over $86k or whatever it is this year you also face dual taxation.

They're talking about scrapping that law (only came in during 2006) but no sign of it happening yet. If they do obviously it would be better to be a US citizen as you retain right of residency in the US.

I think the housing market in Edmonton is even worse than Calgary at the moment. And their public transport system is in total meltdown from what I see on the news. Edmonton is more blue-collar than Calgary. (And the weather during the winter is brutal).

Just saw this in the paper today.

Honestly you might find you're better off in Red Deer, I was going to say Lethbridge but there is a critical housing shortage there. But everyone in Red Deer seems to either be a student, an alchy or works for BP.

Long story short - the infrastructure in Alberta is in rough shape. Not enough schools, not enough hospitals and doctors, not enough roads, not enough public transport, not enough police, etc. Which is kind of good in a way because it's easy to find a job but you rapidly get tired of the "dipstick" factor because there are far too many people doing jobs they're not qualified for.

I actually had to explain to an electrician how to wire my house.
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Steve.

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 1589
Location: Calgary

Posted: Mon Aug 04, 2008 9:57 am

 

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This is good advice. Okotoks is probably the best because it's south of the city so it's warmer. People pay a lot of money to live in the NW because of the "mountain view", which basically means you get to see the hail storm before it hits you. Everytime there's a lightning strike that burns down someone's house it seems to be in the west of the city. SE is the safest with the best weather but it's a long way from downtown (but it's on the Deerfoot).

Airdrie and Cochrane are nice enough but they're north of the city so that = very cold. I never thought I'd be able to tell the difference in two degrees C but when it's -20 every degree counts! Easy to get downtown from Airdrie though. And it's right by the new mall they're building in Balzac.
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Steve.

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