Health Savings Accounts: A Powerful U.S. Tax Savings Opportunity

Canadians moving to the U.S. often ask about tax saving opportunities which await them as future U.S. residents. One such opportunity available to U.S. residents that we love explaining due to the powerful tax benefits it provides is the Health Savings Account or “HSA.” This should not be confused with the Canadian Health Spending Account which typically refers to a cafeteria health spending plan offered by Canadian group plans. The U.S. HSA is an individual savings vehicle that offers triple tax savings to eligible accountholders as I explain below.
HSAs can be opened at a variety of U.S. banks and other financial institutions. Being allowed to contribute to one requires being: 1) a U.S. resident; and 2) enrolled in an accompanying High Deductible Health Plan (HDHP).

Renting out Your Property as a Non-Resident of Canada

Predicting the housing market is already challenging due to interest rate fluctuations and other factors. Throw non-residency into the mix, and for someone departing Canada, it becomes a complicated decision whether to maintain one’s principal residence or to rent it out as a non-resident owner.
If you decide to maintain your property when you leave Canada, and then rent it out as a non-resident, you may be interested to learn about the tax compliance involved for non-resident owners, and what tax planning options are available.

Proposed AMT Rules and Effect on Departing Canadians

The 2023 federal budget announced significant changes to the Alternative Minimum Tax (AMT) regime to better target the AMT to high income individuals. On August 4, 2023, the Department of Finance released draft legislative proposals to modify the AMT regime, effective as of the 2024 tax year.
These AMT changes will have a significant impact on Canadians who are planning on exiting Canada for tax purposes after Dec 31, 2023.

Net Investment Income Tax and the Impact on U.S. Citizens in Canada

The Net Investment Income Tax (NIIT) is a surtax that the IRS applies in addition to regular income taxes. It applies to U.S. taxpayers with higher incomes who have certain types of passive income. First implemented on January 1, 2013, the Net Investment Income Tax (NIIT) was introduced as part of the Patient Protection and Affordable Care Act (often referred to as Obamacare) to help pay for the expansion of Medicare and U.S. health care reforms.

A Case for Bonds

In the dynamic world of investing, achieving a well-balanced and diversified portfolio is crucial for managing risk and maximizing returns. While stocks often take center stage in investment discussions, it's essential not to overlook the stabilizing role that bonds can play. Bonds have not looked that attractive over the past 10 years as they did not provide much in terms of income. Then, investors watched their bond portfolio lose value as interest rates spiked in 2022. However, in the current interest rate environment,

Health Savings Accounts: A Powerful U.S. Tax Savings Opportunity

Canadians moving to the U.S. often ask about tax saving opportunities which await them as future U.S. residents. One such opportunity available to U.S. residents that we love explaining due to the powerful tax benefits it provides is the Health Savings Account or “HSA.” This should not be confused with the Canadian Health Spending Account which typically refers to a cafeteria health spending plan offered by Canadian group plans. The U.S. HSA is an individual savings vehicle that offers triple tax savings to eligible accountholders as I explain below.
HSAs can be opened at a variety of U.S. banks and other financial institutions. Being allowed to contribute to one requires being: 1) a U.S. resident; and 2) enrolled in an accompanying High Deductible Health Plan (HDHP).

Renting out Your Property as a Non-Resident of Canada

Predicting the housing market is already challenging due to interest rate fluctuations and other factors. Throw non-residency into the mix, and for someone departing Canada, it becomes a complicated decision whether to maintain one’s principal residence or to rent it out as a non-resident owner.
If you decide to maintain your property when you leave Canada, and then rent it out as a non-resident, you may be interested to learn about the tax compliance involved for non-resident owners, and what tax planning options are available.

Proposed AMT Rules and Effect on Departing Canadians

The 2023 federal budget announced significant changes to the Alternative Minimum Tax (AMT) regime to better target the AMT to high income individuals. On August 4, 2023, the Department of Finance released draft legislative proposals to modify the AMT regime, effective as of the 2024 tax year.
These AMT changes will have a significant impact on Canadians who are planning on exiting Canada for tax purposes after Dec 31, 2023.

Net Investment Income Tax and the Impact on U.S. Citizens in Canada

The Net Investment Income Tax (NIIT) is a surtax that the IRS applies in addition to regular income taxes. It applies to U.S. taxpayers with higher incomes who have certain types of passive income. First implemented on January 1, 2013, the Net Investment Income Tax (NIIT) was introduced as part of the Patient Protection and Affordable Care Act (often referred to as Obamacare) to help pay for the expansion of Medicare and U.S. health care reforms.

Buying Canadian Property as a Foreign Resident

As a US resident contemplating a potential move to Canada, there are many moving pieces that may factor into your decision-making process. One of the key considerations in any move, especially one that involves a new country of residence, is where you’re going to live. Over the past few years, Canada has begun to take a more aggressive approach to limit certain ownership options for non-Canadian citizens, and as such it is paramount to understand what your restrictions are, and what costs, if any, will apply to you, before making your decision to move.

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