Canadians who spend their winters in the warmer climates of the United States may be attracting some unwanted attention starting this year.
A new tax treaty between Canada and the United States has spawned a cozy relationship between the Canada Revenue Agency and the U.S. Internal Revenue Service. The two tax departments will be sharing a lot more information including the number of days Canadian sun-seekers spend in the good old U.S.A.
That sort of information could invite new taxes, double taxation or even penalties for Canadians who don’t file a U.S. return or report information accurately.
Country of residence
The rules aren’t changing. Any Canadian who spends more than half of the year in the U.S. always runs the danger of being subject to U.S. taxes. Most snowbirds already know they need to keep track and report how many days they spend in each country. Now the tax overlords will actually be comparing results.
Of course, in the world of tax accounting tabulating anything like theRead More »from Snowbirds getting their wings clipped by tax treaty