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Article #38569

Re: Moving to USA

#38569
From: Randy Wittchen
Date: Wed, 29 Mar 2000 00:00
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Hi Mike

Mike wrote:
> 
> I've recently had several job opportunities in the US and was wondering what
> was involved when working in the US.
> 
> I currently am a Quebec resident, the owner of a house and employed full
> time.  Should I accept the move I don't know if I would have time to sell
> the house, but could possibly rent it.  In any case I'd like to possibly
> maintain it if I should decide to move back.  I'm aware that to work in the
> US you need a green card or a Visa (the visa isn't a problem based on my
> profession).


You may wish to check out the following website which deals with the
various visas and the procedures and requirements including H1-b and
NAFTA visas.  See http://www.grasmick.com/ .  There is also some
information on US taxes.

The answers below are general information only and you should seek
professional advice. If you are a resident of Canada for tax purposes
then you are liable to pay tax to Canada on your world-wide income even
while working abroad.  However there is a tax treaty between the US and
Canada which is designed to prevent double taxation so that if you pay
tax in the US you claim that as tax credit on your Canadian tax return. 
It is of course more complex and I would recommend that you consult with
a tax accountant who is an expert in cross-border tax planing and
issues. It has been my experience that pre-planning can save significant
money in this complex area.  If you order your affairs prior to your
move this usually gives you maximium flexiblity.
 
> What I'm wondering is the following
> 1) Can I work in the US and still own a house in Canada (Quebec).

Yes.  However if you rent out the house this will be Canadian source
income which will be taxed.  There are also tax implications such as
capital gains if you then sell the home without returning to
re-establish it as your primary residence.


> 2) Would I have to pay income tax in Canada (or any other tax besides
> property tax).

See above.
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From: Randy Wittchen <wittchen@direct.ca>
Subject: Re: Moving to USA
Date: 2000/03/29
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