Top 4 Cross-Border Tax Saving Tips in Canada and the US
If you are planning a cross-border move to the USA or Canada, you should do tax planning early enough to avoid tax hits, stay legal with the IRS, seek investment management services, and consider planning your estate.
Are you planning to relocate from Canada to the US or from the US to Canada? A move to another country can be great, however, you need to ensure that your financial planning strategies are right. Apart from researching on tax saving tips before your move, you can also work with cross-border accountants. Here are a few tips that can be helpful when it comes to cross-border tax saving tips.
Carry Out Tax Planning Early To Avoid a Tax Hit
It is crucial that you do your tax planning way in advance to prevent a surprise tax hit. You need to schedule a pre-move consultation with the best cross-border financial advisor and accountants in Windsor Ontario. This will help you to discuss your unique situation such as investments in registered plans like 401(k)s and IRAs and non-registered or open accounts. You should also talk about personal and business property details and how they will be affected when you relocate.
Stay Legal with the IRS
You need to seek information by working with a professional team that has an in-depth understanding of the border and enables you to stay within the law with the IRS and prevent expensive mistakes. As a green card holder or US citizen, you need to file annual tax returns with the IRS on your income irrespective of where you live. When you work with a cross-border accountant in Windsor, you can avoid getting into trouble with the IRS.
Consider Investment Management
When moving across the border, there are many things that you need to consider. One of these things is the investment management of your personal assets. When you cross the border, most investment advisors may not be licensed to handle your investments owing to regulatory rules. Therefore, your assets in IRA or 401(k) may be frozen or may not be actively managed. You can avoid this by finding a dual-licensed advisor before the move so that you can start planning ways of managing both your Canadian and US investments.
Consider Estate Planning
In most cases estate planning between the US and Canada tends to add extra complexity. If you are a Canadian resident, you should consult your lawyer regarding updating your will for Canada. This is crucial since you may want to utilize a non-resident to be the executor of the will. This will help you avoid double taxation of the CRA determines your will as a non-resident trust. The best accountant Windsor trusts will help clients who are looking for a power of attorney or a trustee and an executor.
Whether you are planning a cross-border move or you have already relocated from the US to Canada, you will need professional help to simplify and even optimize your finances. You need to get in touch with the best cross-border accountants in Windsor Ontario who specialize in wealth management and financial planning. With the best professionals, you can rest assured that you will be onside with the IRS and your retirement assets and investments will be protected.