The Canadian in America – Canada – U.S. Income Tax Planning and Preparation

Myth - You can roll an RRSP/RRIF/LIRA into a US IRA

Many people believe they can simply maintain the tax-deferred status of their RRSPs/RRIFs/LIRAs by rolling them into an Individual Retirement Account in the US . This cannot be done. The only way you can make a contribution to a regular IRA is to contribute cash. This means you have to collapse the registered plan, pay the requisite taxes in both Canada and the US and then move the cash into an IRA if eligible. Sometimes, there is confusion surrounding transfers into a "Rollover" IRA which can come from a US qualified plan only (401k, 403b, etc), not a Canadian registered plan. The only way to maintain the tax deferral on an RRSP/RRIF/LIRA while living in the US is to take the appropriate elections on your US tax return each year. Even so, you may not be able to defer the income at the State level.

Income Tax Planning
	Tax Filing Requirements - which tax return do you file? In which country? When?
	Severing Ties With Canada - make sure you are not taxed in both Canada and the US!
	The Canada/US Tax Treaty - learn what it is and how it works.
	Taxation of RRSPs/RRIFs/LIRAs - landmines in waiting.
	Taxation of Interest & Dividends - potential for double tax.
	Taxation of Capital Gains - Which country taxes? Canada/US comparison.
	Taxation of Pensions - company pensions, OAS, CPP/QPP.
	Social Security Number - or Individual Taxpayer Identification Number, why you might need one.
	Taxation of Rental Properties - a paperwork nightmare how to apply.
	Foreign Tax Credit Planning - your ticket to avoiding double taxation.
	Key Differences - Canada/US comparison of tax brackets, deductions, and so on.