Cross Border Tax Advisors

If you are a US citizen, or a resident of either country with income in both places, you may be required to file tax returns in both. The Canada-US Tax Treaty helps prevent you from being taxed twice on the same income, but it does not eliminate the filing requirement. Where and how you file depends on your residency status, income sources, and account types — and getting this wrong can result in penalties even if no additional tax is owed. 

The Canada-US Tax Treaty allocates taxing rights between the two countries depending on the type of income — employment income, pension income, investment income, and others are each treated differently. Beyond the treaty, foreign tax credits allow you to offset taxes paid in one country against your liability in the other. A coordinated cross-border tax plan applies both mechanisms together so you are not overpaying in either jurisdiction.

FBAR stands for the Foreign Bank Account Report (FinCEN Form 114). US citizens and green card holders are required to file it annually if the combined value of their foreign financial accounts exceeds $10,000 USD at any point during the year. This includes Canadian bank accounts, RRSPs, TFSAs, and investment accounts. The penalties for failing to file — even unintentionally — can be severe, ranging from $10,000 per violation for non-willful failures to significantly higher amounts for willful non-compliance.

 Each country treats the other’s retirement accounts differently, and the differences matter. Canadian RRSPs can be tax-deferred in the US under the Canada-US Tax Treaty, but only if the proper treaty elections are filed with the IRS — this does not happen automatically. TFSAs do not receive the same protection and are treated as taxable foreign trusts by the IRS. On the Canadian side, US 529 education plans and Health Savings Accounts are not recognized under Canadian tax law and may be fully taxable in Canada. Withdrawal timing and account sequencing require careful planning to avoid unnecessary tax exposure in both countries.

 Selling real estate in the US or Canada can trigger capital gains tax obligations in both countries, even if you are a resident of only one. The US taxes its citizens on worldwide income regardless of where they live, and Canada taxes non-residents on gains from Canadian real estate. How the gain is calculated, what exemptions apply, and how to report the sale differs between the two systems. Withholding requirements may also apply at the time of sale. We help you understand the full tax picture before you sell, not after. 

Possibly. Both Canada and the US have their own rules for determining tax residency, and they are not based solely on how many days you spend in a country. Canada uses a residential ties test — factors like a home, a spouse, or a driver’s license can establish residency regardless of time spent. The US applies a Substantial Presence Test based on a rolling three-year day count. Spending even a limited amount of time in a country can trigger filing obligations if the thresholds are met, and the consequences of being considered a tax resident unexpectedly can be significant.

Yes. We work with clients who have tax obligations in both countries and provide planning and guidance that covers both sides of the border. Most tax advisors are equipped to handle one country’s system but not both, which often leads to gaps in planning or conflicting advice. We coordinate the full picture, so your filings, account structures, and financial decisions are aligned across both jurisdictions. For the actual preparation and filing of tax returns, we work alongside qualified tax preparers in each country as needed.

We start with a complimentary consultation to understand your situation — where you live, where your income comes from, what accounts you hold, and what questions you are trying to answer. There is no obligation and no pressure. We will let you know clearly whether we can help, what that would look like, and what the next step would be if you decide to move forward.