Post: #26

(12-20-2013 08:47 AM)wiscanada Wrote:  

(12-20-2013 01:43 AM)Akula Wrote:  

(12-19-2013 04:41 PM)Fisto Wrote:  Thanks guys, I'll keep it around 3k as less than that will be impractical.

Another way to do it is to just take cash out if you want to avoid inter-bank transfers fees & charges. You usually can exchange $$s for other currencies I think at most of the major US bank offices and get a decent rate if you plan ahead.

That's what I do when I come back home from Russia (the other way around). I just exchange some Rubles for Dollars or Euros and carry it with me. And you don't need to report it unless it's over $10,000. I know it could be scary carrying around all that cash, but I split it up, and $3000 fits easily in my wallet. You're not doing anything illegal anyway (but I'm sure the US police state will eventually want to track this someway too by eventually putting some kind of memory chip in each bill!).

I find that I usually get good exchange rates with my debit card anyway so don't really take too much with me now and just use my card for the most part. But that has risks too - my buddy here just had his card 'cloned' somehow and someone was spending thousands on it in Vietnam (!!). He was using it all over Asia in places like Thailand, Indonesia and Malaysia - plus Egypt recently, so not sure where it happened. He's a UK citizen, and apparently there you are covered, but not sure about how it works in the US.

RE the US persons living abroad exemption(s), well, I am pretty attuned to this given that Russia's taxes (13%, flat) are way lower than in the US and I report taxes every year and have to pay over and above Russia's - even though the crappy, out-of tune with the rest of the world US tax system seems to be one of the only ones that taxes it's citizens on global income.

That's another story (and a big joke IMO - the US is the only advanced country in the world that does it ) but basically you get two exemptions: 1) a maximum of $97,600; and 2) a housing allowance (which can be anywhere from $20,000 to over $100,000 depending on where you live. It's big in Moscow due to the hugely expensive cost of housing here). See IRS form 2555 for how this works, and also check out the instructions to form 2555 for more details (but also consult with a tax accountant if you want more detailed information (my little disclaimer))))

Canada also taxes on worldwide income.

I don't think they do. If so I would have heard about it. The UK, Europe, Australia, New Zealand all don't. They all laugh at US guys are are well aware that we get screwed by our archaic and draconian tax system.

I think if you are a 'factual resident' of Canada you have to pay Canadian taxes - Canada seems to be trying to make sure that citizens who live abroad part time but spend most of their time in Canada still pay. But if you're a 'non-resident' you don't pay taxes to Canada. And why would you you're not living there nor earning income from their in Canadian dollars either. The US is way off base in this regard.

I read this and it seems to be saying that you only pay taxes for the time you spend in Canada if you are a non-resident. Maybe I'm wrong and someone can correct me.

http://www.cbc.ca/news/business/taxes/6-...-1.1167892

Post: #27

(12-20-2013 11:10 AM)Akula Wrote:  

(12-20-2013 08:47 AM)wiscanada Wrote:  

(12-20-2013 01:43 AM)Akula Wrote:  RE the US persons living abroad exemption(s), well, I am pretty attuned to this given that Russia's taxes (13%, flat) are way lower than in the US and I report taxes every year and have to pay over and above Russia's - even though the crappy, out-of tune with the rest of the world US tax system seems to be one of the only ones that taxes it's citizens on global income.

That's another story (and a big joke IMO - the US is the only advanced country in the world that does it ) but basically you get two exemptions: 1) a maximum of $97,600; and 2) a housing allowance (which can be anywhere from $20,000 to over $100,000 depending on where you live. It's big in Moscow due to the hugely expensive cost of housing here). See IRS form 2555 for how this works, and also check out the instructions to form 2555 for more details (but also consult with a tax accountant if you want more detailed information (my little disclaimer))))

Canada also taxes on worldwide income.

I don't think they do. If so I would have heard about it. The UK, Europe, Australia, New Zealand all don't. They all laugh at US guys are are well aware that we get screwed by our archaic and draconian tax system.

I think if you are a 'factual resident' of Canada you have to pay Canadian taxes - Canada seems to be trying to make sure that citizens who live abroad part time but spend most of their time in Canada still pay. But if you're a 'non-resident' you don't pay taxes to Canada. And why would you you're not living there nor earning income from their in Canadian dollars either. The US is way off base in this regard.

I read this and it seems to be saying that you only pay taxes for the time you spend in Canada if you are a non-resident. Maybe I'm wrong and someone can correct me.

http://www.cbc.ca/news/business/taxes/6-...-1.1167892

The general rule is that you do not pay taxes as a non-resident citizen of most countries (except the U.S. and perhaps one or two other nations). The problem that some people encounter, most notoriously in the U.K., is that they fail to realize that they may technically remain residents of their home country because of something they did not do -- even though they live overseas. They then get hit by a nasty income tax bill that they do not expect.

This situation usually occurs because the expat owns a home in his home country or failed to eliminate some other important legal indicator of residency. So, the lesson is that you must carefully review the legal requirements for non-residency for tax purposes and then ensure that you eliminate anything that legally makes you a resident for tax purposes (even though you now live overseas). I see this problem occur most often in news stories about U.K. expats. (Everything that I said here is in addition to any annual limit on time spent in your home country.)

Post: #28

(12-20-2013 07:45 PM)Tail Gunner Wrote:  This situation usually occurs because the expat owns a home in his home country or failed to eliminate some other important legal indicator of residency. So, the lesson is that you must carefully review the legal requirements for non-residency for tax purposes and then ensure that you eliminate anything that legally makes you a resident for tax purposes (even though you now live overseas). I see this problem occur most often in news stories about U.K. expats. (Everything that I said here is in addition to any annual limit on time spent in your home country.)

Akula, you are right in what you wrote but its also more of what Tail Gunner has posted. Many Canadians don't take the proper steps to ensure that they are non-residents once they leave. Clearance letters, departure filings, legally disconnecting everything...otherwise they are just considered canadian residents abroad.

Post: #29

Some misinformation on this thread.

FATCA does not apply to everybody. If you keep your foreign account below 50K (USD) they won't report you to the IRS.

Post: #30

^^^10k bro. That technically includes any brokerage accounts or safety deposit boxes too.

Post: #31

Talk to a tax lawyer. Do not listen to ANYBODY on a public forum about tax advice.