[dolvk]

Good day. I am currently in the process of organizing the logistics for an L1A visa for myself. I am Canadian and work for a Canadian software company that is the parent of a US based subsidiary and will be moving to oversee the US offices. The question I have relates to the tax implications of my change in residency. I have a house in Canada and many revenue properties and have heard that any sales of these properties would have to pay capital gains in the US if residency is established and that I would be better to dispose of them before moving. Can anyone speak to this?

Also, I am not sure I understand treaty tax status. I understand that I will have to file returns in both countries, but do I have to pay taxes twice? What about potential investment revenues in Canada while I'm a resident of the US?

Thanks in advance for any help.

[AtlantaTaxExpert]

While living and working in the United States, you have to pay taxes ONLY on U.S.-sourced income if you file as a non-resident or dual-status return in 2011. If you file a Canadian return and report the U.S.-sourced income, you would claim a tax credit for the U.S. taxes paid on your Canadian return.

After 2011, you would file as a resident, paying taxes on all world-wide income. On those returns, you would claim a tax credit for taxes paid to Canada.

Yes, if you sell a capital asset while a U.S. resident, you would pay taxes on that sale, but at the reduced capital gains rate.

[dolvk]

Thank for the information. This helps to clarify a few of my tax concerns. Are you an accountant?