Question
Hi Cam, question for you: I’m thinking of moving to the US soon, and want to make sure I do things correctly. What can I do before my departure date to make sure things go smoothly for tax purposes?
Answer
Without knowing your exact situation and details, it’s hard to really give you specifics. But generally speaking, doing the following is always good practice:
- Realise that Canada has a departure tax – You need to understand how this works;
- Close any TFSA and RESP accounts before you leave;
- Figure out if you’ll still meet Canadian Resident status (you’ll need to file Canadian tax returns if you do.)
- Don’t invest in any Canadian (or rather any non-US) mutual funds. PFIC problems can arise.
That should get you off to a good start, but as always, tax is often unique to the individual, and these items may not cover everything on your to-do list.
Usual Disclaimer: This information is for general information purposes only, and deals with complicated and time-sensitive info that may not apply to your situation. Tax rules are always changing, and this information may not be current. Tax is complicated, this information is not tax advice, and don’t rely on this info to make tax decisions – Hire someone to help you.