U.S. Citizens
U.S. Citizens & Canadian ownership of U.S. based assetsDo you carry U.S. Citizenship?
Most countries tax individuals based on residency (where you live), not your Citizenship. However, our neighbors to the south tax their Citizens regardless of what nation they call ‘home’.
For example a Canadian living full time in Hong Kong (with no Canadian assets), files for income tax in Hong Kong only, whereas an American would be required to file in both the U.S. and H.K.
Further, the U.S. has a formal Estate Tax which may affect high net worth individuals whereas Canada has probate, a tax of sorts, but at a much lower percentage.
To make it more challenging, the definition of high net worth changes each year.
Are you a Canadian with U.S. assets such as real estate or securities?
The I.R.S. may tax large estates of Canadians if they contain what are referred to as “Situs assets”, such as U.S. stocks, real estate etc.
If this is you, make sure it is addressed.