Tag Archives: FATCA

Tempted to emigrate to Canada? Know the facts before renouncing US citizenship

Plane on the background flag of the United States. Travel concept.By Brent Soucie, CPA, CA, T.E. Wealth

Special to the Financial Independence Hub

In the past three days, many unhappy American voters — including many celebrities — have been crashing web sites containing information on how to emigrate to Canada. As a cross-border tax specialist, I’ve had my share of calls about this, so am republishing the following blog that originally appeared on T.E. Wealth’s website a year ago.  The posting caters to U.S. citizens already living in Canada, to U.S. citizens considering moving here, and to U.S. citizens considering renunciation of their U.S. citizenship.

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With all of the recent attention on the Foreign Account Tax Compliance Act (FATCA), I thought it would be a good time to address some of the issues surrounding our friends who reside here in Canada and hold U.S. citizenship – there are an estimated one million of you! You come from all walks of life. Some of you emigrated here shortly after birth, some moved here to start or grow your career(s), and some of you have lived here your entire lives, having derived your U.S. citizenship through your parents. In any case, FATCA impacts you and you need to know how. I’m often asked about the merits and drawbacks of keeping versus renouncing U.S. citizenship. Such is a deeply personal decision with potentially serious ramifications, so you need to make it with your eyes wide open. Here are some important things to consider.

Are you a U.S. citizen?

  • If you were born in the United States, you are a U.S. citizen – no exceptions
  • If you were born in Canada to two U.S. citizen parents, you are a U.S. citizen
  • If you were born in Canada with one U.S. citizen parent, your date of birth, as well as the amount of time your U.S. parent resided in the U.S., will determine whether or not you are a U.S. citizen

Facts about U.S. citizenship

  • It is illegal for U.S. citizens to enter or leave the U.S. without a valid U.S. passport (section 53.1)
  • Carrying U.S. citizenship offers several benefits, including protection while travelling abroad, consular services, access to the U.S. domestic job market, ease of travel to and from the U.S., and the right to vote in U.S. elections

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