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Old 04-07-2010, 02:26 PM
 
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I am transferring to a position in Buffalo and my relatives in Niagara county (Ontario) have offered me rent-free (well, I would just pay expenses and some property taxes indirectly through them) accomodation in a house they only live in 4 months/year. They are on the title, not me.

Can I do this? Will my NY income be taxed by Canada? I am already a dual US and Canadian citizen, so I know I can live in Canada indefinitely, but what about registering car, etc. ... I am concerned about getting pulled into a vortex where I would have a bunch of Canadian taxes. And this may add up to more than if I rent a place in NY.

Any advice? Thanks!
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Old 04-07-2010, 02:46 PM
 
Location: Hamburg, NY
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US taxes would be taken out of your paycheck like normal & at the end of the year you will owe taxes on your income to Canada, since that would be your country of residence. You would be able to credit the amount taken out of your check toward this but since taxes in Canada are higher you will still owe the Canadian Government money at the end of the year.
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Old 04-07-2010, 02:49 PM
Status: "Write the vision and make it plain" (set 28 days ago)
 
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I guess the Tonawandas might be a better choice.
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Old 04-07-2010, 03:51 PM
 
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I'm not a cpa but I know the info above is wrong call a local (to Buff/Canada) accountant and run it by them. I am quite certain you will be paying taxes where you work, US. Since you will have no Canadian income I'm assuming, you will not pay Canadian taxes. You're relatives will be paying property taxes. You will register your car where you live, likewise you will need a Canadian DL then.
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Old 04-07-2010, 04:09 PM
 
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I just wanted to add that you also can establish yourself within the Canadian system by paying taxes there and having the US refund them to you. Just in case you might want to reap the benefits in the future in case you ever need to go on "assistance". As far as social security go the US and Canada have a reciprocal agreement so as long as you paid in one country you can get the benefits in the other assuming legal residence.
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Old 04-07-2010, 05:23 PM
 
Location: Hamburg, NY
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Quote:
Originally Posted by choosing78 View Post
I'm not a cpa but I know the info above is wrong call a local (to Buff/Canada) accountant and run it by them. I am quite certain you will be paying taxes where you work, US. Since you will have no Canadian income I'm assuming, you will not pay Canadian taxes. You're relatives will be paying property taxes. You will register your car where you live, likewise you will need a Canadian DL then.
You would be wrong. If you reside in Canada full time you must pay tax on your income regardless of where you earn it. Like I stated previously, the tax you pay to the US out of your check would be used as a credit toward what you owe Canada but because Canada has higher taxes you would owe them the difference. Of course this could change if you happen to make a lower income or have several children or something else where you normally get a large refund. In that case your taxes may even out in the end.
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Old 04-17-2010, 07:12 PM
 
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Default thanks for the replies

Thanks for the information. My dad suggested to get a local lawyer, though a CPA would do, too. I swagged off the wikipedia income tax tables, and it looks like I would owe Canada about $3K per year after fed and NY taxes. And maybe a few K more for registering/insuring a car and the pass to cross the border and gas expense (abt 37 mi from house to work one-way).

But considering it costs more than that to rent a place, and the fact I may not have to deal with health insurance in the US, I think it may be worth it to try this situation out. And if it's too much of a headache, I figure I can move to NY a few months later.

BTW, house is a gorgeous 1800's house near Niagara-on-the Lake. I've been there almost every summer since 1998 and am in love with it. Work location is near downtown BUF. I would love to make this happen!
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Old 04-18-2010, 08:53 AM
 
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I don't know if you already know this but I would suggest taking the QEW to the Peace Bridge and crossing into the US there. It's a quicker crossing and will avoid traffic, tolls. Sounds like a long drive but Niagara on the Lake is so gorgous it might be worth it. Good Luck.
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Old 04-18-2010, 08:55 AM
 
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I forgot to mention it before. I think you might be pleasantly surprised at the tax situation. I did the live in Canada work in US for a while and never owed taxes. Maybe I just had a "good" accountant!
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