CHANGES IN FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (FIRPTA)

As of November 3, 2003 anyone who purchases property from a foreigner on U.S. soil (i.e. a Canadian who owns U.S. Property) that is valued over $300,000 USD will be required to withhold 10 per cent of the purchase price until the seller provides an Individual Taxpayer Identification Number (ITIN).

The ITIN allows the IRS to verify that the property seller is paying the income tax that may be required as a result of the sale.

If you are already filing tax returns with the IRS as a result of renting your US Property, you will already have an ITIN. A Social Security Number will work as well. If you do not provide an ITIN you will forfeit the 10 per cent withholding tax.

In order to obtain an ITIN, you need to complete IRS Form W-7 and allow at least six weeks for processing.

For more information, you may contact the IRS at:
Internal Revenue Service
P.O. Box 21086
Drop Point 8731 FIRPTA Unit
Philadelphia, PA 19114

BRITISH COLUMBIA RESIDENCY QUESTIONS FINALLY ANSWERED!

As a direct result of the extensive efforts of the CSA, we have finally received a policy letter from the government of British Columbia regarding the six month residency requirement for BC health care coverage. In the communiqué prepared by the Medical Services Plan Operations of the Ministry of Health Services it states:

To be deemed residents and remain eligible for coverage, beneficiaries who spend part of each year outside British Columbia must be physically present in Canada at least six months in a calendar year and continue to maintain their home in British Columbia.

Based on the preceding, a Canadian citizen or holder of Canadian permanent resident status could, for example, spend up to six months a year in Arizona, four months a year in various parts of Canada, and the remainder of his/her time in British Columbia and remain eligible for coverage.

Of note, in some circumstances health care coverage may be extended up to 12 months during an out-of-province vacation, regardless of destination. Approval is limited to once in five years.

To view the letter in its entirety, please follow this link. read more

CROSSING THE BORDER? LEAVE YOUR MEAT AT HOME!

We've been getting many calls asking what kind of meat you can take over the border for you trip. Meats, meat products, and animal by-products from ruminant animals of Canadian origin are PROHIBITED. Ruminants include cows, sheep, goats, deer, antelope, moose, elk and caribou.

We've been asked about dog food, homemade spaghetti sauce, frozen lasagna and even about sandwiches in a picnic cooler. As one of our call centre staff put it, "if you're chewing on a corned beef sandwich, they're going to ask you to spit it out."

All fruits, vegetables, plant products, meat products and live animals MUST BE DECLARED at the time of entry into the United States regardless of whether they are allowed or not. You could be assessed a monetary penalty for not declaring all such items.

If you "forget" to declare these items and are found with them in your possession they will be confiscated and you may be fined.