Whether you are a US citizen or work or invest in the US, KPMG's private client-cross border tax professionals can help you navigate the tax laws of both Canada and the US.
A complex landscape
American citizens and green card holders that live in Canada face daunting challenges in their financial planning, since they must deal with the tax laws of both Canada and the US. And that's not all—Canadians and non-Americans who invest in US properties, spend a significant amount of time in the US working or on vacation, or want to move to the US may face similar tax hurdles.
These individuals face a tax landscape that can become even more complex as tax laws on both sides of the border continue to evolve, particularly for investments and businesses abroad. Tax reporting should also be considered, as taxpayers could face substantial non-compliance penalties even when no tax exposure exists.
Our areas of experience include:
Trusts can provide both tax and non-tax benefits. However, when a trust exists on one side of the Canada-US border and a beneficiary or contributor resides on the other, many taxpayers are inadvertently caught by a mismatch in the rules.
Our professionals can assist you with developing a tax-effective trust approach that can enhance wealth management during your lifetime and beyond. We can also help you design a will with testamentary trust provisions which qualify for US estate tax deferral mechanisms and the Canadian capital gains deferral for assets passing to a surviving spouse.
The current landscape is affecting tax compliance and how individuals will prepare for future challenges, changes and opportunities.
We can discuss some practical solutions to manage tax compliance and assist you with the many tax filing and information reporting requirements in the countries where you reside, hold citizenship, own assets or do business.
Both Canada and the US impose significant taxes on the transfer of wealth. KPMG can assess an individual's current exposure to capital gains, estate, inheritance, gift, and probate taxes, and analyze alternatives for you as you consider how to distribute your wealth to heirs, charities, and other beneficiaries. In addition, Canadians who own marketable securities or real property in the US, or who have a US pension, must consider the US estate and income tax implications. Fortunately, we have the tools to help you approach estate tax challenges while also helping manage income taxes.
Americans living in Canada must consider both Canadian and US income and estate taxation. A carefully considered plan can help manage the relevant taxes imposed by multiple jurisdictions. Our professionals can assist in the design and implementation of a wide-ranging estate plan that accomplishes your wealth transfer intentions while managing exposure to global taxation.
Cross-border income tax and transaction planning
We can help you meet your investment and earnings objectives while managing your tax obligations in multiple jurisdictions. Our experienced and dedicated professionals deliver strategic and administrative support. For example, we can assist you with structuring your holdings, including vacation properties and developing a tax-efficient retirement plan.
We can also help you develop and implement a customized tax plan, that we then review with you on a regular basis to keep it current. We constantly track tax legislative developments to identify new opportunities and to advise you of adverse consequences.