Patzt wrote:We hoped to keep a small residence here in Canada and one in Virginia. We found out last evening that we should have some papers and we're not sure what we need or how to get them.
Can someone help?
"Some papers". Bit of an understatement I'm afraid! It really depends on where you want to live and the way the tax system works you cannot have two principal residences, it's either Canada or the US.
If you could stand living exactly six months a year in Canada and six months a year in Virginia then actually you don't have to do anything, because you enter as a visitor into the US and he enters as a visitor into Canada. And you just file your
taxes as individuals. (Not necessarily consecutive days, six months total each country). However in reality, USCIS is going to have a problem with a spouse entering as a "visitor" sooner or later unless he can satisfy them he lives in Canada.
If you're going to maintain two residences, from a tax standpoint it will work out better that way because otherwise one will be subject to capital gains tax when you sell it. Technically under the law if you're married, married couples can only have one primary residence but if you only visit each place as visitors I'm not sure it would matter - might work out better not to get married though, the tax guide on CGT says married couples can only have one principal residence.
But anyway, if swapping homes every six months doesn't appeal, then one of you is going to have to sponsor the other for permanent residency, you need to decide where you want your principal residence to be.
Reba mentioned the health care system in Canada, that's true, but it's really awkward for US citizens to sever ties for tax purposes from the US, especially if they have a home there.
The Canadian spousal immigration system is simpler than the US one, so it's easier for you to sponsor him than the other way around.
However really your first port of call needs to be an accountant who specialises in US/Canadian cross border tax issues in my opinion (and all of the good ones in this situation will be Canadian, not American - bear that in mind when you look for one, Canadians have a better understanding of the US tax system than they do of ours). You really need to have a careful think about which is the most advantageous tax situation to be in, because there are all sorts of things that will be affected, for example any investments you have becoming subject to US tax, or any investments he has becoming subject to Canadian tax, etc. What returns etc. you will need to file every year and with whom.
Once you've figured out where you want your tax home to be, then you can figure out whose immigration system you want to use!
Bear in mind all of this also has a bearing on other things, like where you have your cars registered, who issues your driver licenses, etc.
Steve.