The Canadian Snowbird in America: Professional Tax and Financial Insights Into Temporary Lifestyles in the U.S.: Professional Tax and Financial Insights into a Temporary Lifestyle in the U.S. - Softcover

Ritchie, Terry F.; Wruk, Brian D.

Softcover

ISBN 10: 1550228048 ISBN 13: 9781550228045

Verlag: ECW PR, 2007

Inhaltsangabe

With thousands of Canadians heading south for the winter each year, many of these individuals, referred to as ?snowbirds,” face unique and challenging U.S. tax and financial planning considerations. Crossing the border, spending time in the U.S., and engaging in various financial transactions have legal and tax implications both in Canada and the U.S. The Canadian Snowbird in America covers the U.S. tax filing requirements based on seasonal residency in the U.S. and the U.S. tax issues related to the renting and sale of U.S. real estate. Information related to the acquisition and financing of U.S. real estate is also covered. The Canadian Snowbird in America provides a comprehensive overview on financial management issues including the implications of opening U.S. bank and investment accounts, the management of Canadian investment and registered accounts, cross-border retirement planning and foreign exchanges issues. Readers will learn strategies to deal with a fluctuating loonie. Snowbirds will gain valuable insight into how and what their provincial health plans cover while they are in the U.S. Understanding what to look for in a travel insurance policy is covered as well. Incorporating recent changes in the Canada-U.S. Income Tax Treaty and U.S. income and estate tax rules, this book is an invaluable resource for Canadians who spend time or invest in the United States. If you are a Canadian looking at adopting a temporary lifestyle in the U.S., you cannot afford to head south for the winter without this book.

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Über die Autorinnen und Autoren

Terry F. Ritchie is a partner in the firm Transition Financial Advisors with offices in Canada and the United States. He is an IRS-enrolled agent and the only financial advisor to hold the Canadian registered financial planner (RFP) and the U.S. certified financial planner (CFP) designations. He lives in Edmonton, Alberta. Brian D. Wruk has dual citizenship in Canada and the United States. He is a registered financial advisor (RFA) and the founder of Transition Financial Advisors. He lives in Gilbert, Arizona.

Terry F. Ritchie is a financial advisor well versed in addressing snowbird issues. A resident of Canada and the U.S., he is the only financial advisor to hold the Canadian Registered Financial Planner (RFP), U.S. Certified Financial Planner (CFP) designations and to be enrolled to practise before the U.S. Internal Revenue Service (IRS) as an Enrolled Agent (EA). He is a partner in the firm of Transition Financial Advisors with offices in Canada and the U.S.

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The Canadian Snowbird in America

Professional Tax and Financial Insights into Temporary Lifestyles in the U.S.

By Terry F. Ritchie, Brian D. Wruk

ECW PRESS

Copyright © 2007 Transition Financial Advisors Group, Inc.
All rights reserved.

ISBN: 978-1-55022-804-5

Contents

Preface, 
Introduction, 
I. Don't Worry, I'll Be Back: Crossing the U.S. Border, 
II. Welcome to the United States — Now Pay Up! U.S. Tax Issues for Snowbirds, 
III. A Home Away from Home: Purchasing U.S. Real Estate, 
IV. Money Doesn't Grow on Trees: Money Management for Snowbirds, 
V. Till Death Do Us Part: U.S. Estate Planning Issues for Snowbirds, 
VI. Help! I've Fallen, and I Can't Get Up: Risk Management for Snowbirds, 
VII. Mayday! Mayday! Finding Help, 
Appendices, 
Appendix A: Snowbird Resources and Relevant Websites, 
Appendix B: List of Canada-U.S. Border Crossings, 
Appendix C: Canada-U.S. Advisor Interview Checklist, 
Appendix D: Canada-U.S. Differences, 
Index, 

CHAPTER 1

Don't Worry, I'll Be Back

Crossing the U.S. Border

Entering the United States

With the events of September 11, 2001, the ease with which Canadian snowbirds cross the American border changed dramatically. With the passing of the U.S. Western Hemisphere Travel Initiative (WHTI) in April 2005, significant changes are being implemented and still debated. At the time of writing and despite implementation of the WHTI, a number of Canadian politicians suggested that seniors should be exempt from having to obtain a passport, much like the exemption provided for children under the age of 15 in late February 2007. Regardless of what ultimately occurs, the U.S. Departments of State and Homeland Security are moving forward with implementation of WHTI along the timetable they have proposed. Earlier in 2007, the American ambassador to Canada, David Wilkins, in a speech on U.S.-Canada relations, responded to questions about the border-crossing changes by saying, "I believe we need to get ready for it, and so, simply put, the message I try to give to Americans and to Canadians is 'Get a passport.' It's that simple." In this case, we agree with Ambassador Wilkins' statement and advice because of the changes 9/11 brought to our countries. This chapter addresses issues you will face when crossing the American border and reviews the guidelines to obtain and maintain your Canadian passport.

The B-2 Visa

Despite the close relationship between Canada and the United States, anytime you cross the border you mustn't forget you are crossing into another country. When entering the United States, you can do so without the issuing of a U.S. immigration visa if your purpose is simply to spend your winters in the United States.

Under U.S. immigration rules, spending your winters in the United States is referred to as a temporary pleasure trip. The American visa category automatically assigned to you for this purpose is the B-2 visa. It is available to temporary visitors only and does not allow you to work or establish long-term residence in the United States. There is no application to complete, nor will you receive a visa document or stamp in your passport.

Under current rules, B-2 visitors are automatically entitled to be in the United States for a maximum of six months in the calendar year. Under this visa category, your stay in the United States must be temporary, and you must demonstrate a clear intention to depart prior to the end of the authorized period of your stay. If you leave the United States and reenter later, the six-month period starts over. However, you can't keep leaving the United States at the end of each six-month period and assume that a new six-month period has begun. Again, this must be distinguished from the "one-time" period granted by U.S. immigration once you make your entry at a U.S. border point. Repeated crossings back into the United States start to show intent to reside there, which means you are in violation of the visa issued to you and are now required to pay taxes, as outlined in Chapter 2.

Upon your entry into the United States, you must have the proper documentation to prove your origin and identity. Although a U.S. Customs and Border Protection (USCBP) officer may accept an oral declaration of your citizenship, it is recommended that at minimum you carry your passport and perhaps additional documents that establish citizenship or Canadian residency such as a birth certificate or driver's license. Under current USCBP procedures, all travelers are required to present photo identification. If you are not a Canadian citizen but a Canadian resident — such as a landed immigrant of Canada — different guidelines and procedures will be required when you cross into the United States. Copies of your non-immigrant visa in Canada and your passport from your country of birth are required.

You have to understand that it is a privilege to enter the United States, not an entitlement. Therefore, U.S. immigration can refuse entry to you if you have a previous criminal record or cannot show a legitimate reason why you are entering the United States. In terms of a past criminal conviction, it does not matter how long ago or how serious the offence was. If you have a previous criminal conviction, you should seek qualified American immigration counsel and complete U.S. Citizenship and Immigration Service (USCIS) Form I-192 — Advance Permission to Enter as a Non-Immigrant. Note that it could take a few months to process this form and could compromise your plans to visit the United States.

If you are traveling through an airport, you are required to complete USCBP Declaration Form 6059B, the blue card you typically fill out at the airport. This form requires personal information, including the purpose of your visit to the United States, information about where you are staying, what flight you are taking, as well as financial information related to the value of all goods you are bringing to leave in the United States.

Documents Required to Cross the U.S. Border

Ideally, the best documentation to have when entering the United States is a Canadian passport. In April 2005, the U.S. Departments of State and Homeland Security announced the Western Hemisphere Travel Initiative, which requires travelers from Canada, Mexico, and Bermuda entering the United States to carry a passport or other accepted document. Starting January 23, 2007, all Canadian citizens traveling by air from Canada are required to present a valid Canadian passport to enter or reenter the United States. This requirement includes citizens of the United States, Mexico, and Bermuda — and the children of citizens of those countries — as well. Those traveling by land and sea will need a passport by January 1, 2008. However, with the passing of the Homeland Security Appropriations Act on October 4, 2006, the U.S. Departments of State and Homeland Security now have until June 1, 2009, to implement the whti. Nevertheless, it is strongly recommended that you carry your Canadian passport when you leave and reenter Canada.

If you attempt to enter the United States without a valid Canadian passport, you will likely be referred to secondary screening at the airport or port of entry to the United States. If you've ever had the occasion to spend time in the secondary screening "lounge," you likely saw a number of anxious and concerned folks — the-deer-in-the-headlights look comes to mind — who wait "patiently" to be...

Details zur Ausgabe

• Verlag: ECW PR
• Erscheinungsdatum: 2007
• Sprache: Englisch
• ISBN 10: 1550228048
• ISBN 13: 9781550228045
• Einband: Taschenbuch
• Anzahl der Seiten: 179
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: Nicht verfügbar