US/CAN Dual citizenship investors?

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Elliott Milek · Answer

Hi Reno,

You tax status will be determined based on your residency status not your citizenship, unless you were born in the US and have not given up your US citizenship. There are a few thresholds that would determine your tax residency ties, the most important being where is your principal residence located.

Essentially, the country you are a tax resident off, you will be required to pay tax in that country on your worldwide income. If it's determined that you are not a tax resident of Canada you would be able to benefit from the lower US tax rates and additional tax benefits such as the use of 1031 exchange, and accelerated depreciation.

If you would like to discuss your situation in a bit more detail feel free to reach out to me directly, I may be of assistance.

Thanks, Elliott

Omar Khan · Answer

@Reno Law What do you mean by leveraging your capital gains? You can do a 1031 exchange but will still have to pay taxes to the CRA effectively negating any benefits.

Best way to handle finances: get a TD, RBC or BMO US account and link with your Canadian account. It will make it easier to (A) leverage your credit history from Canada into the US (only works on single family) and (B) easy to move money between US and Canada.

Happy to answer any other questions you might have. Tag or PM me.

Reno Law · Answer

that’s right, I’m in Seattle most of the time.

Omar Khan · Answer

@Reno Law That depends, do you permanently live and work in Canada or the US. Your profile says Seattle hence the confusion.

US/CAN Dual citizenship investors?

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