Cross-Border
Cross-Border Tax Planning: United States, Canada, France, Europe, and Africa
CEGAudit is CPA-licensed in both the United States and Canada, with an established professional network across France, Europe, and Africa. We support clients on both sides of a move, before departure and after arrival, so nothing is missed on either return.
For Clients Relocating to the United States
Pre-move tax planning and residency analysis
Review of exit tax, departure tax, or deemed-disposition consequences in your country of residence
Analysis of U.S. tax residency rules and the effective date of U.S. filing obligations
Treaty analysis to identify and reduce double-taxation exposure
Coordinated tax planning and recommendations across both jurisdictions, delivered by one team
Ongoing Cross-Border Compliance
U.S. tax compliance for foreign nationals and green card holders, including FATCA and FBAR reporting
Canadian tax compliance and CRA representation for clients maintaining Canadian ties
Structuring for foreign investors establishing a U.S. presence
Exit Tax and Departure Compliance: Canada to the United States
Relocating from Canada to the United States triggers more than a change of address. It triggers a tax event on both sides of the border. Under subsection 128.1(4) of the Canadian Income Tax Act, a departing resident is generally deemed to have disposed of most property at fair market value on the date tax residency ends, creating a “departure tax” liability even though no asset has actually been sold. At the same time, the move creates new U.S. filing obligations under the Internal Revenue Code and the terms of the Canada-U.S. Income Tax Convention. Missing either side can mean double taxation, penalties, or years spent unwinding avoidable exposure.
This is one of the areas where our cross-border practice does its deepest work. As a firm licensed as CPAs in both Canada and the United States, we plan the move itself, not just the returns that follow it. We review your asset base before departure, identify what is subject to deemed disposition, and build a tax plan that lets you transition your assets to the U.S. in a compliant, properly documented way, coordinated across your Canadian departure filing and your first U.S. returns.
Canadian Departure Compliance We Manage
Deemed disposition analysis under section 128.1(4) of the Income Tax Act (Canada)
Form T1161, List of Properties by an Emigrant of Canada
Form T1243, Deemed Disposition of Property by an Emigrant of Canada
Election under subsection 220(4.5) to post security and defer payment of departure tax
Principal residence exemption review and RRSP or RRIF cross-border treatment under Article XVIII of the Treaty
U.S. Entry Compliance We Manage
Residency start date and substantial presence test analysis
Dual-status or first-year choice return preparation (Form 1040 or 1040-NR)
Treaty-based return position disclosure, Form 8833, under the Canada-U.S. Income Tax Convention
Treaty tie-breaker analysis under Article IV for individuals with residency ties to both countries
Foreign bank account and asset reporting: FBAR (FinCEN Form 114) and Form 8938 (FATCA)
Foreign trust reporting (Form 3520 and 3520-A) where applicable, including accounts such as TFSAs that the U.S. treats differently than Canada does
Tax Treaty Analysis
Every cross-border move is reviewed against the applicable income tax treaty, for Canadian clients the Canada-U.S. Income Tax Convention, to identify residency tie-breaker rules, eliminate double taxation on the same income or gain, and confirm the correct treaty-based filing position before any return is submitted.
Exit tax is not unique to Canada. We work with clients relocating from across Europe and the Middle East who face comparable departure or exit tax regimes under their home country's tax law, and we apply the same cross-border planning approach to their move to the United States: reviewing pre-move exposure, performing treaty analysis under the applicable U.S. income tax treaty, coordinating with local tax counsel where needed, and structuring the transition to protect what our clients have built.
