#1
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Establishing Canadian Residence for tax purposes
I have been asking everyone for a good solution to minimize taxes, and I haven't been satisfied with an answer. Maybe you guys could help. Is establishing a residence in Canada an option? What would I have to do to do it? Could I just put money in a Canadian bank? If I rent an apartment there, can I claim I live there (eventhough I don't plan on ever staying there, unless I got up to fish)?
Has anyone done anything like this? |
#2
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Re: Establishing Canadian Residence for tax purposes
While I'm not 100% sure, I'm pretty sure that to legally establish residency, you need to live somewhere at least half the year. While you might be able to get away with faking it by renting an apartment and the like, you will be guilty of tax fraud and other crimes if you get caught. I doubt it's worth it.
Finally, even though successfully doing this might allow you to avoid paying US taxes, you will instead owe Canadian taxes. I don't believe Canada is like England and some other countries that don't tax gambling wins. I think in Canada it is treated as ordinary income, similar to the USA. Later, Greg Raymer (FossilMan) |
#3
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Re: Establishing Canadian Residence for tax purposes
No Canada doesn't tax gaming winnings, but they have audited pro gamblers, because the government has gotten greedy and felt that they were losing thousands of dollars from these indidividual. I recall one famous case where a guy was supposedly beating the house at a provincial parlay game and because he was about 10 million in their eyes he owed them about 4.5 in taxes. Meanwhile if he was just grinding out 10,000 a year they would probably leave him alone.......
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#4
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Re: Establishing Canadian Residence for tax purposes
I believe you need to renounce your citizenship as well JV. To stay an American and not be liable for the first $70,000 in earned income to be subject to taxation you must pass the 510 day rule. It basically states that you must not be physically present in the US for 510 days out of an 18 consecutive month period.
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#5
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Re: Establishing Canadian Residence for tax purposes
I am pretty sure that even if you renounce your U.S. citizenship and move to another country, you are still obligated to pay taxes to the U.S. for some period of time--I believe it is 10 years. This of course is on top of the taxes you would owe to your new country, as the Fossilman noted.
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#6
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Re: Establishing Canadian Residence for tax purposes
B-Man is pretty much correct. Below is a link that elaborates on his post.
Fleeing the US to Avoid Taxation |
#7
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Re: Establishing Canadian Residence for tax purposes
While I don't make millions, I make enough so that establishing legal residence there would be worth. I'd even go live with the Canucks for six months if I had too.
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#8
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Re: Establishing Canadian Residence for tax purposes
Thanks Jimbo. Damn, thats a long ass time. I can't envision a way to pull that off. What about just keeping money that I get offshore in a Canadian bank? Forgive me if that's a really dumb question.
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#9
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Re: Establishing Canadian Residence for tax purposes
What about trying to at least minimize your state taxes??
I know a fishing guide who works all over but maintains his legal residence in Alaska for tax purposes. |
#10
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Re: Establishing Canadian Residence for tax purposes
B-man is right. US taxes on your world wide income.
The US has a treaty with most countries, including Canada, so any taxes you pay to Canada would not be double taxed by the US. Since Canada's taxes are generally higher, for most people, they don't end up owning any US taxes, but your case would, I am guessing, be different. D. |
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