Double Taxation

[chsieh]

Do anybody know much about double taxation?  Have anyone of you encounter double taxation experience?  What is the tax implication for a US citizen working in US and having his family living in Canada and lives half a week in US and the half week in Canada.

[thaiguy]

Assuming you're a PR in Canada, you'd have to file returns for both the U.S. and Canada.

There is a tax treaty between Canada and the U.S. that states you should not have to pay more taxes to both countries than you would have to one of them.  So you file your U.S. federal and state returns, and then the Canadian returns with a tax credit for taxes you paid to the U.S.  The result is that you pay an amount equal to just the Canadian taxes - but it's split.

[chsieh]

Thank you, Thaiguy.

How many percent tax do Canada PR have to pay in Canada?  Do we need an accountant to help us sort this out?  We have some investment properties in US.  It took me several years to understand the US tax system and now I have to learn the Canadian system as well.

[thaiguy]

It's really up to you as to whether you need a tax accountant.  But it's probably a good idea since you have some complicated assets to report (at least the first time you file).

[chsieh]

Thank you.