The increasing trend of Canadians owning assets abroad complicates estate planning and tax strategies. Advisors now face the challenge of navigating complex international regulations and treaties to help clients effectively manage their global wealth.
Wealth transfers often aren’t just a matter of crossing generations, but borders. Many Canadians have built businesses in other countries, have vacation homes abroad or, if they’ve immigrated here, hold assets or own properties in their land of origin.
Tax laws can be complicated, even more so when they involve cross-border ownership of financial securities and holdings, business and corporate assets, or property. Canada and the U.S. hold a tax treaty covering citizens of both countries, which stipulates treatment of asset sales, income taxation and other considerations. Most tax treaties provide for foreign tax credits that can applied to offset applicable Canadian taxes and other exemptions.
A Canadian selling or gifting U.S. real estate may have to withhold and remit a percentage of the sale price . But that tax can also be reduced through tax planning strategies, Ms. Ewing says. If the assets are sold and taxes paid in their home jurisdictions, the various tax treaties Canada has with affiliated countries likely means there is no double taxation. However, beneficiaries must be careful for other reasons, Ms. Shipley-Strickland says.
“Talking to different cross-border professionals, and seeing what I’ve seen, a lot of people lean into around $100,000 as being the max. But it isn’t black and white. And as a rule, you generally can’t gift property,” she says.
Estate Planning Cross-Border Wealth Tax Treaties Canadian Assets International Investments
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canadians pay tribute to Oct. 7 victims, hostages in cross-country eventsOTTAWA — Hundreds of people were gathering Sunday in cities across Canada to remember the victims of the Oct. 7 attack by Hamas on Israel and the ongoing war in Gaza.
Read more »
Canadians pay tribute to Oct. 7 victims, hostages in cross-country eventsOTTAWA — Hundreds of people were gathering Sunday in cities across Canada to remember the victims of the Oct. 7 attack by Hamas on Israel and the ongoing war in Gaza.
Read more »
Canadians pay tribute to Oct. 7 victims, hostages in cross-country eventsOTTAWA — Hundreds of people were gathering Sunday in cities across Canada to remember the victims of the Oct. 7 attack by Hamas on Israel and the ongoing war in Gaza.
Read more »
Canadians pay tribute to Oct. 7 victims, hostages in cross-country eventsOTTAWA — Hundreds of people were gathering Sunday in cities across Canada to remember the victims of the Oct. 7 attack by Hamas on Israel and the ongoing war in Gaza.
Read more »
CHL boosts cross-border rivalry by launching series against USA Hockey’s development teamThe series is being billed as the CHL-USA Prospects Challenge with this year’s games played at two Ontario cities – London and Oshawa – on Nov. 26-27
Read more »
Evacuation orders near Grand Forks, B.C., as U.S. wildfire threatens to cross borderGRAND FORKS, B.C. — Tactical evacuations are underway outside the B.C. southern Interior town of Grand Forks, as an out-of-control wildfire in Washington state surges north and threatens to cross the border.
Read more »