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Keep more of what s rightfully yours -- legally! When Canadians think of tax havens, they rarely think of the US; but it truly is one of the best options available for Canadians today. A Canadian's Best Tax Haven: The US proves it by showing readers actual tax situations and comparing taxes paid by a person with exactly the same income living in Canada, the US, and a traditional tax haven. By the author of the best-selling cross-border tax book The Border Guide: A Guide to Living, Working, and Investing across the Border, this informative book covers the following: What is a tax haven? Why you might want a tax haven Why traditional tax havens don t work What some of the prevalent myths about tax havens are and what the truth is Hidden costs of tax havens The US-Canada Tax Treaty Information on cross-border taxes for snowbirds --And more! This book shows you how to take advantage of tax haven strategies available to Canadians, easily and legally, and reduce your taxes payable. A Canadian s Best Tax Haven: The US doles out indispensable advice that will help you keep more of what you earn.
| Introduction | p. xv |
| What Is a Tax Haven? | p. 1 |
| The Traditional Tax Haven | p. 2 |
| The Real Tax Haven Definition | p. 2 |
| Where Are the Traditional Tax Havens? | p. 2 |
| The Taxes of Tax Havens | p. 4 |
| Bahamas | p. 4 |
| Cayman Islands | p. 5 |
| Mexico Is Generally Not Considered a Traditional Tax Haven | p. 5 |
| The US Is a Good Tax Haven for Canadians | p. 7 |
| Do not fear the Internal Revenue Service (IRS) | p. 7 |
| The current US economic environment | p. 10 |
| Canada Is a Tax Haven | p. 12 |
| An End to the Traditional Tax Haven? | p. 12 |
| Why Traditional Tax Havens Don't Work | p. 15 |
| A Tale of Two Business Partners | p. 16 |
| The United States Is the Only Tax Haven to Which Canadians Can Drive | p. 19 |
| Easy commute | p. 20 |
| Buying or building your dream home | p. 21 |
| Disadvantages of Traditional Tax Havens | p. 21 |
| Get me off of this island! | p. 22 |
| Tax havens are treaty deficient | p. 23 |
| Culture shock | p. 24 |
| Problems receiving proper medical treatment | p. 24 |
| Owning a vehicle in a foreign country | p. 24 |
| The Hidden Cost of Traditional Tax Havens | p. 27 |
| Full Disclosure Inadequate in Tax Havens | p. 28 |
| US Registered Investment Advisors Provide the Best Consumer Protection | p. 29 |
| Brokerage Firms Are Not Required to Act in the Consumer's Best Interest | p. 30 |
| Tax Haven Advisor Background Information Is Scarce | p. 31 |
| Focusing on the Fees | p. 31 |
| Management expense ratio (MER) | p. 31 |
| Undisclosed security markups | p. 32 |
| Multiple middle men | p. 33 |
| Asset protection trusts | p. 34 |
| Total fees a significant drag | p. 34 |
| No bargains | p. 37 |
| Tax-free options in the US | p. 38 |
| Financial leaches | p. 38 |
| Withholding tax diminishes returns | p. 40 |
| An Example of a Typical Tax Haven Island Family | p. 42 |
| Medical Considerations | p. 45 |
| Health Insurance Premium Rates | p. 46 |
| Plan Ahead | p. 47 |
| Get the Best Medical Care by Using Both the Canadian and American Systems | p. 48 |
| Treaty Protection Necessary for Medical Treatment | p. 49 |
| Immigration Concerns for Medical Services | p. 50 |
| US Medicare Is Available | p. 50 |
| Medical Coverage for Those 75 and Older | p. 51 |
| Understanding the Canada-US Tax Treaty | p. 53 |
| Tax Treaties Should Be Embraced Rather than Ignored | p. 54 |
| Determination of Residency: The Tiebreaker | p. 55 |
| Choice and control of residency | p. 57 |
| Breaking Canadian ties for a traditional tax haven island | p. 58 |
| The Treaty Allows You to Run a Business in Canada from the US | p. 59 |
| No Need to Drop Your Canadian Directorships | p. 60 |
| Bronfman Rules | p. 61 |
| Don't wave red flags at the CRA | p. 62 |
| The Tax Treaty Prevents Double Taxation | p. 63 |
| Foreign tax credits | p. 63 |
| Exemptions | p. 65 |
| Withholding rates | p. 65 |
| Treaty Tax Rates Are Less than Tax Haven Tax Rates | p. 66 |
| Receiving Income While Living in a Tax Haven | p. 67 |
| Interest Income | p. 69 |
| US Corporate Dividend Income | p. 70 |
| Canadian Qualified Dividend Income | p. 70 |
| Canadian Real Estate Capital Gains | p. 71 |
| General, Non-Real Estate Capital Gains | p. 73 |
| Pension and Annuities | p. 74 |
| Periodic Registered Plan Withdrawals | p. 76 |
| Lump-Sum Withdrawals from RRSPs | p. 76 |
| Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) | p. 78 |
| Old Age Security (OAS) | p. 79 |
| Canadian Rental Income | p. 80 |
| Employment Income | p. 81 |
| Royalties | p. 83 |
| Who Won the Tax Haven Tax Challenge? | p. 84 |
| Real Results from Real People | p. 85 |
| High-level corporate executive | p. 87 |
| Business owner and entrepreneur | p. 88 |
| Broker | p. 89 |
| Business owner selling a successful business | p. 90 |
| Simply retired | p. 91 |
| Teachers | p. 91 |
| The US Is an Incredible Tax Haven for Small-Business Owners | p. 93 |
| Uninformed Advisors May Become Obstacles | p. 94 |
| The Power of Tax Free versus Tax Deferred | p. 95 |
| Two Common Myths | p. 97 |
| Larger Capital Gains Exemption Equivalent | p. 97 |
| Brother to brother | p. 98 |
| Operating a Canadian Business from the US | p. 99 |
| Tax-Free Rollovers on Investment Real Estate | p. 100 |
| The Unreal-Real Billionaire | p. 101 |
| The Greatest Opportunities: Retirement Savings Plans | p. 103 |
| Nearly All Registered Plans Are Taxed Identically | p. 104 |
| What Does the IRS Think of RRSPs? | p. 105 |
| RRSP phantom income | p. 106 |
| Locked-In Retirement Accounts | p. 107 |
| Hire a Professional Cross-Border Financial Planner | p. 109 |
| Realizing the Dream | p. 111 |
| Overcoming the Myths | p. 115 |
| Substantial exit tax | p. 116 |
| Subject to US estate taxes | p. 117 |
| Facing the Internal Revenue Service (IRS) | p. 118 |
| Dealing with the Canadian Departure Tax | p. 118 |
| Defer or eliminate the departure tax | p. 120 |
| Principal residence disposition on exit | p. 122 |
| Eliminating US Estate Taxes | p. 123 |
| No Canadian Estate Tax Holiday | p. 125 |
| Pre-US-entry trust | p. 125 |
| Immigration to a Tax Haven | p. 126 |
| North American Free Trade Agreement (NAFTA) | p. 127 |
| The gold card | p. 127 |
| Family immigration sponsorship | p. 129 |
| Pending retirement visa | p. 130 |
| Choosing the Best Advisors for the Job | p. 131 |
| The Four Phases of Cross-Border Planning | p. 132 |
| Data gathering | p. 132 |
| The pre-exit plan | p. 133 |
| The post-exit plan | p. 133 |
| Maintenance | p. 134 |
| The Dually Qualified Planning Professional | p. 134 |
| Dually Qualified Team Members | p. 138 |
| Chartered Accountants (CAs) in Canada and Certified Public Accountants (CPAs) in the US | p. 138 |
| What to Expect from Cross-Border Financial Planners | p. 139 |
| What Does Your Cross-Border Lifestyle Dream Cost? | p. 141 |
| How are cross-border planners compensated? | p. 141 |
| Putting costs into perspective | p. 144 |
| A value proposition | p. 145 |
| Tips on Finding the Best Cross-Border Financial Planner | p. 146 |
| The Next Step to Your Enriched Cross-Border Lifestyle | p. 147 |
| Samples and Illustrations | |
| Portfolio Net Fees Comparison | p. 37 |
| Dividend Withholding Treaty Rates versus Tax Havens | p. 40 |
| Portfolio Net Fees and Taxes Comparison | p. 41 |
| Tax on $100,000 Interest Income Comparison | p. 70 |
| $100,000 US Dividend Income Comparison | p. 71 |
| Tax on $100,000 Canadian Dividend Income Comparison | p. 72 |
| Tax on $100,000 Canadian Real Estate Capital Gains Income Comparison | p. 73 |
| Tax on $100,000 Capital Gains Income Comparison | p. 74 |
| Tax on $100,000 Pension Income Comparison | p. 75 |
| Tax on $100,000 Periodic Registered Plan Withdrawals Comparison | p. 77 |
| Tax on $100,000 Lump-Sum RRSP Income Comparison | p. 78 |
| Tax on $20,000 Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) Income Comparison | p. 79 |
| Tax on $12,000 Old Age Security (OAS) Income Comparison | p. 81 |
| Tax on $100,000 Canadian Rental Income Comparison | p. 82 |
| Tax on $100,000 Canadian Employment Income Comparison | p. 83 |
| Tax on $100,000 Canadian Royalty Income Comparison | p. 84 |
| US versus Canada After-Tax Income Comparison | p. 96 |
| Milestone Diagram | p. 136-137 |
| Table of Contents provided by Ingram. All Rights Reserved. |
ISBN: 9781770401013
ISBN-10: 1770401016
Audience:
General
Format:
Paperback
Language:
English
Number Of Pages: 149
Published: 16th May 2012
Dimensions (cm): 22.9 x 15.4
x 1.5
Weight (kg): 0.236
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