My employer wants me to move to Texas. Now what?

Joan_L New member

3POSTS

5 years ago

Hi, my employer wants me to move to Texas and will sponsor my immigration process. I'm in Ontario now. What should I be aware of before making a decision? is there an "exit" tax on my investments? Should i sell my house or keep it and rent it? How do I avoid paying taxes in both countries? What happens when I return in five years (that is the plan)?

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Joan_L New member

3POSTS

5 years ago

Hi Two Step,

Austin is most likely. Yes. I'm a Canadian citizen.

Joan_L New member

3POSTS

5 years ago

twostep wrote:
Texas is a big piece of real estate. Where will you be moving to?
Are you a Canadian citizen?

Austin. Yes I'm a Canadian citizen.

Tanuki714 Serial expat

283POSTS

5 years ago

Hi Joan,

Regarding any type of exit tax, it’s really up to the Canadian government and laws so maybe other Canadian immigrants to the US can answer.
Re: rent/buy in the US and rent/buy in Canada... very personal decision based on a lot of things including your comfort level. Personally, if it’s for a few years, I would not sell and rent instead assuming you will eventually be “rapatriated’ for work reasons. But like I said, very personal. I would, however, consult with a financial consultant or tax attorney who is familiar with both US and Canadian laws because retaining property and renting means you will have Canadian income, which probably has tax implications.

Same on income tax. The US has treaties with specific countries to avoid “double taxation” with nuances on origins and types of income. I have no idea if Canada is one of them. I would recommend a tax lawyer familiar with US/Canadian scenarios.

Regarding “what happens when you go back”.... well, you just move back. Again, consult with a tax attorney re: the year of the move and your fiscal residency. Regarding an exit tax for the US, it only applies to permanent resident (green card) and citizens. Based on what you describe, I am assuming you will be on a non immigrant visa (meaning a work visa with a letter) in which case US exit tax does not apply.

Hope this helps

1 member reacted to this post

twostep Serial expat

466POSTS

5 years ago

For a Canadian the work authorization is not rocket science or a financial burden. Read up on it on uscis.gov.
No double taxation US/CAN. You will file income tax annually for both and they offset.
Nobody here knows your personal situation. Rent or sell - weigh cost and risk factors.
Austin - be ready for high COL, traffic and weather. Have fun.

1 member reacted to this post

Brewpub56 Active member

93POSTS

5 years ago

Perhaps your employer has a legal department that can help you out with some of your questions?

GuestPoster2809 Guest

0POSTS

3 years ago

Moving to another country for work is a significant decision, and there are several factors to consider before making your choice to move to Texas from Ontario. Here are some key points to be aware of:

Immigration Process: Your employer will sponsor your immigration process, which typically involves obtaining a work visa or permanent residency in the USA. Ensure you understand the specific visa category and the requirements, processing times, and any potential limitations or restrictions related to your status.

Exit Tax on Investments: Canada does not have an official "exit tax" on investments when you leave the country. However, certain investment accounts may have tax implications upon withdrawal or disposition. Consult with a tax professional in Canada to understand any potential tax consequences related to your investments.

Real Estate Decision: Whether to sell your house in Ontario or keep it as a rental property depends on various factors, such as the local real estate market, potential rental income, tax implications in both countries and your long-term plans. Consulting with a financial advisor and a tax expert can help you make an informed decision based on your specific circumstances.

Avoiding Double Taxation: To avoid double taxation, Canada and the USA have a tax treaty in place. It allows you to claim foreign tax credits in Canada for taxes paid in the USA, effectively reducing your Canadian tax liability. However, the tax treaty can be complex, so it's advisable to seek professional tax advice to ensure compliance and minimize tax obligations in both countries.

Returning to Canada in the Future: If you plan to return to Canada in five years or later, you need to be aware of the potential tax implications. If you become a non-resident of Canada for tax purposes during your time in the USA, re-establishing your Canadian tax residency upon your return may involve certain procedures and considerations. Understanding the tax residency rules in both countries will be crucial to manage any tax implications upon your return.

Financial Planning: Moving to another country involves various financial and tax considerations. It's crucial to develop a comprehensive financial plan, including tax planning, investment strategies, estate planning, and retirement savings, to ensure your financial well-being both during and after your time in Texas.

Professional Advice: Given the complexities of immigration, taxation, and financial planning in both Canada and the USA, seeking professional advice from immigration consultants, tax experts, and financial advisors is highly recommended. They will help you navigate the process, minimize tax liabilities, and make well-informed decisions based on your unique situation and future plans.

Overall, moving to Texas for work is an exciting opportunity, but careful planning and advice from professionals will be essential to ensure a smooth transition and avoid potential tax and financial pitfalls.