Tax/Car Advice for Canadian Resident working in US with TN

hdtvrocks
New Member



Joined: 29 Mar 2007
Posts: 4
Location: Vancouver

Posted: Thu Mar 29, 2007 11:37 pm

 

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Hi all,

Great site. I've been trying to search online for info before going to an accountant. Most of the info I've found is generally for Canadian non-residents. However, my situation is leaning me towards keeping my canadian residency, we're thinking of only going for 2-3years, canadian business share holder, own a house, etc. Anyhow, my wife received a job offer and will be moving next week on a TN1, so I have a few questions.

1. How does bringing goods across the border work? When we drive over the border with a bunch of clothes and computers, etc do they just let bring everything without tax implications?
2. If we're keeping our canadian residency, and have a primary residence in Vancouver, can I keep my insurance and plates for our car while working in the US?
3. I understand that under the free trade agreement, as a canadian resident I will be first taxed in the US, and then use tax credits to pay the canadian taxes, however, if I sell my principle residence in Canada will I have to pay US cap gains tax on the profit? As I understand it, in the US you must purchase another house within a certain time frame in order to avoid capgains taxes on your priciple residence. So I'm wondering if Uncle Sam will want his piece of the pie if I sold my canadian home while working in the US.
4. Anyone know of a reasonably priced Can/US tax accountant in Vancouver? I was talking to a friend, his company paid 4G's to Arthur Anderson to do his taxes. I definitely don't want to spend that much.

Thanks in advance!

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spunwardbound
New Member



Joined: 29 Mar 2007
Posts: 4
Location: Alaska

Posted: Fri Mar 30, 2007 12:33 am

 

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hdtvrocks:

good questions - you're asking a lot of my questions - where did you get any of your info about US/ Canadian taxes? I'm trying to get it all together to move onto Vancouver island (as a US and Canadian citizen) from another (geographically close) island in Alaska.

Since it is tax season here in the USA, the questions are ripe for the picking - I'm trying to sort out how Canada views IRA and Roth IRA retirement investment accounts held in the US if that income is earned and deposited into an American bank and only enters Canada after age 60 - if ever? Where are you getting any of your information about the relationship of Canadian/American taxes?

I think I'll phone the customs agents at the Prince Rupert border about bringing the household goods into Canada. I'm afraid I'll change my mind in a couple of years and want to go back to the wilderness up North so I'm hoping to install one of my young adult kids (a Canadian) in a home I purchase in B.C. and probably build another in Alaska within ten years and then count on croaking before it gets any more complicated.

My young daughter claims she was forced by the Canadians in Victoria to hand over her Alaskan driver's license when she applied for her Canadian one. I suppose if one took all of the required (including the driving) test in the USA they could hardly force you to give up your Canadian license.

I 'd bet they would make you register and license your vehicle in the state you were residing in within so many days - Washington state is far harsher than Alaska on this because we have so many tourists to merge with. Some urban communities have the vehicle inspection rules they (used to?) have in B.C.

I think I'll try the Canadian Studies Program at Western Washington University in Bellingham to find resources for my research. You are fairly close to them so you might try that too. The Canadian consulate in Seattle seems a bit snoooty - probably suffering from Seattle sickness- but they're no help at all. Have you looked into the social security - social insurance business?

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hdtvrocks
New Member



Joined: 29 Mar 2007
Posts: 4
Location: Vancouver

Posted: Fri Mar 30, 2007 9:33 am

 

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I've had friends that have worked in the US. However, most go as non-residents and didn't own a home here in Canada.

The grasmick site has good info too.

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Marc-TN
Junior Member



Joined: 30 Mar 2007
Posts: 10
Location: LosAngeles

Posted: Fri Mar 30, 2007 11:30 am

 

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Hi hdtvrocks,
I am doing my taxes right now, but more specifically I can maybe address the moving your goods&chattels.

First, your wife isn't getting a TN-1. Drop anyone and anything that refers to TN-1.it/they are 13 years out of date. TN-1 is the name that the US-Canada Free Trade Agreement used. NAFTA is a TN. No "one". Okay, yes, they are effectively identical, but all the same this should be red-alert to any CPAs or tax lawyers (or company HRs) that really aren't paying close attention to detail.

your Q1: If you are on a TN, pretty much yep.
In march 2006 I sent my household goods from Toronto to LA via ABF's UPack service (worked great, and good value). The truck crossed the boarder at Buffalo and used an inventory and customs forms I filled out. No inspection, no delay. The key here is to make sure these are your "goods and chattels" and none of it is staying in the US.it leaves when you do. Also, no alcohol hidden in there, and pay attention to the agricultural prohibitions.
The ABF people were very very good at guiding me though the level of detail for the inventory and how to fill out the forms (Declaration of Unaccompanied Goods I think it is called, USCBP).

Q2 is state dependent.
California = Hell NO (to keeping BC plates/insur)
And they'll treat your BC div lic like a dog-sled license.road test for you! I believe only a very few states allow it, like AZ, FL and CT maybe a few others (the state DMV will need a reciprocal agreement with your Province).

Q3 is beyond the scope of my tax problems this year.but you have the correct understanding for paying uncle sam as step one, then filing in Can, and paying any discrepancy after credits.
There is something in the US tax code called a "dual-status tax year" wherein income you earn AND RECEIVE during the part of the year you are a non-resident is not US taxable.that terminology may help in your inquiries, I don't know to what degree it applies to CapGains.One thing I have discovered is that I am being advised to "elect" to be taxed as a "resident alien" for the whole of 2006. Its just easier. Apparently. I'm not convinced yet that this is easy.

Best
_________________
Marc offers no advice, only personal stories and wild, bearly founded judgements.
Marc is known to cross international borders with suitcases half-full of buttertarts.

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Marc-TN
Junior Member



Joined: 30 Mar 2007
Posts: 10
Location: LosAngeles

Posted: Fri Mar 30, 2007 11:35 am

 

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Oh one other thing, NAFTA (I am almost sure) has nothing about taxes in this sense, you are looking at the US-Canada Tax Treaty
_________________
Marc offers no advice, only personal stories and wild, bearly founded judgements.
Marc is known to cross international borders with suitcases half-full of buttertarts.

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spunwardbound
New Member



Joined: 29 Mar 2007
Posts: 4
Location: Alaska

Posted: Fri Mar 30, 2007 12:13 pm

 

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Thanks Marc,
That's useful jargon for the household goods. I just talked to a Lynden transport rep who related how a Californian shipped two live horses undeclared as beings. (those Californian's!)
Caused some waves when one died in transport. Sorry getting off topic - both US and the Canadian side of moving back and forth relate what seem to be reasonable rules. I have citizenship in both countries so not sure when the residency status issue kicks in, if I work and live alternate partial years in both countries. It would be convenient if Canada would just purchase Alaska.

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Reba
Moderator


Canuck in NC

Joined: 16 Jul 2004
Posts: 1172
Location: North Carolina

Posted: Sat Mar 31, 2007 4:23 am

 

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it was offered to Canada, they didn't want it. They figured they already had enough arctic land and polar bears.
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