Globe and Mail – Tax ramifications for U.S. persons living, investing in Canada could be dire

Matt Altro was recently interviewed by Helen Burnett-Nichols from the Globe and Mail to explain the various considerations that US citizens, green-card holders and income-tax residents need to keep in mind come tax time. The article was published on February 27, 2020 and discusses the TFSA, RESP, ETFs and other types of accounts and holdings that can impact the complexity of tax filing requirements for US citizens with cross-border considerations.

You can see part of the article below, or you can click here to view it in-full on the Globe and Mail website.

Tax ramifications for U.S. persons living, investing in Canada could be dire

Helen Burnett-Nichols
The Globe and Mail
February 27, 2020

For U.S. persons living in Canada, navigating the tax-filing requirements around investments can be cumbersome and challenging. Financial advisors who serve these individuals need to ensure they have a solid understanding of the implications that their recommendations could have on these clients’ tax burden.

That’s especially important as U.S. citizens, income-tax residents or green-card holders living in Canada have the “worst of both worlds” when it comes to filing their taxes, says Matt Altro, certified financial planner, president and chief executive officer at MCA Cross Border Advisors Inc., in Montreal.

As U.S. taxes are based on citizenship, not residency, U.S. persons living outside of that country are required to report their worldwide income to the Internal Revenue Service (IRS), which Mr. Altro says can be an “aggravating filing exercise” – even in cases in which tax credits align with those in Canada. […]