Cross Border Financial Planning

 

 

If you live, work, or invest across the U.S.-Canada border—or expect to inherit money from the other side—it’s important to understand three key areas that can affect your financial picture.

First, taxes. The U.S. taxes citizens and permanent residents on their worldwide income, while Canada taxes based on residency. This means you could owe taxes in both countries. Fortunately, the U.S.-Canada tax treaty helps prevent double taxation, but proper planning is essential to stay compliant and avoid surprises.

Second, investment accounts. Not all accounts are treated the same on both sides. For example, the U.S. doesn’t recognize the TFSA as tax-free, which can create unexpected tax obligations. On the flip side, Canadian residents with U.S. retirement accounts may face Canadian taxes without the right strategy in place.

Third, moving money across borders. Converting currency, reporting transfers, and maintaining cross-border accounts all require attention to detail. Small missteps can lead to extra costs or penalties.

Cross border financial situations can be a little bit tricky, so as always, we’re here to answer any questions you might have.