"Financial Planning
Specialist"
Philip Myles
Account Executive
What snowbirds need to consider now
Heading south of the border this winter?
Here is a review of the key issues to consider
prior to departure.
- Count the days. If your "physical
presence" in the U.S. totals 183 days or more in a
year you will be deemed to be a U.S. resident for tax
purposes. If this happens, you will be required to file a
U.S. return and pay U.S. tax on your income from all
sources, including Canada. Your "physical
presence" is the number of days that you spent in
the U.S. in the current year plus one-third of the days
spent in the U.S. in the previous year plus one-sixth of
the days spent in the U.S. in the second preceding year.
- If you are considered a U.S. resident for tax
purposes because of the "physical presence" test,
but have spent fewer than 183 days in the U.S. in the
current year, you can avoid being considered a U.S.
resident if you can establish that you have closer
connections with Canada. This information must be
reported on the U.S. Form 8820 by June 15 of the following
year.
- If you have spent 183 days or more in the U.S.
in the current year you will be considered a U.S.
resident for income tax purposes unless you are
considered a Canadian resident under the Canada-US Tax
Treaty.
- Review your health insurance coverage.
Even if you are planning only a short trip to the U.S.,
you need some form of out-of-country insurance. Most
provincial plans cover just a tiny portion of the cost of
U.S. health care services.
- Although premiums can be costly, they qualify for
the Medical Expense Tax Credit, which may help
offset this expense. Other items that qualify for this
credit include prescription drugs, eye glasses and dental
work that you receive whether in Canada or while you're
out of the country. Keep your receipts.
- Safeguard the property you're leaving behind.
Check with your general insurance company about coverage
limitations if you are away from home for an extended
period of time. Most companies will require that your
home be checked on a regular basis and may ask you to provide
proof of this, in order for your homeowner insurance to
cover you fully.
- Update your will. Ensure that your will
is up-to-date and that your executor and advisors know
where to locate it or have copies of it. You might a so
consider drawing up a "living will." This
document conveys your wishes with respect to emergency
treatment. You may consider having the living will
validated by a U.S. lawyer.
- Review your Power of Attorney. You can
designate someone to make decisions for you if illness or
injury prevents you from making decisions for yourself.
You could also give this person the authority to manage
your finances or sign documents on your behalf when you are
out of the country.
- Take important papers with you. Bring
your passport or proof of Canadian citizenship, your provincial
health care card, your out-of-country insurance policy
number and copies of other important documents (will,
Power of Attorney, prescriptions).
- Touch base with your advisors before you go.
It's worthwhile to review your financial plan before you
leave, to help keep your travels worry-free. If you're
going to be away for an extended period of time, arrange
to have your account statements, investment notices and other
important mail forwarded to your U.S. location. In case
of an emergency back home, make sure your financial
advisors know how to contact you.
CHECK OUT MY FAVOURITE WORLD WIDE FINANCIAL WEB RESOURCES
Canadian Financial Resources
Investors Group
Online - Discover how we can help you "Pay Yourself
First."
- Canada Net
Pages
- Resource of Canadian business and finance data
available on the WWW.
- KPMG Online
- Canada's largest firm of chartered accountants
and management consultants.
- Department of
Finance Canada
- Canadian Government Dept. of Finance.
- H & R Block
Canada
- Tax consulting firm.
- Money
Talk
- Listing of Canadian Personal Finance Sites
Other
Financial Resources
- Investments:Mutual
Funds
- Yahoo Guide to Fund Listings.
- Electronic Newsstand
- Excellent link to hundreds of publications
online.
[PREVIOUS]
[HOME]
INVESTORS
GROUP
Philip Myles
Account Executive
59 Harmony-Drive
Saint John, N.B
E2J 2W2
Bus: (506) 696-7226
Toll Free: (800) 696-7226
Fax: (506) 658-0766
Email:myleshe@nbnet.nb.ca