Canadians move to the U.S. for a variety of reasons. Some Canadians are drawn to states like California, Florida and Arizona, which offer the promise of year-round warmth and sunshine; others may want to be close to family members who live in the U.S.; and others might be permanently relocated south of the border by their employers, a move which can have significant tax consequences for employees, such as being subject to departure tax or U.S. estate tax.
While moving to the U.S. is appealing to many Canadians, Canadian expats must consider their cross-border tax obligations once they are on the other side of the border. Navigating the rough terrain of expatriation tax and other cross-border taxes can be a challenge, but there is some new relief for expats who maintain RRSPs in Canada. Read the rest of this entry »