Snowbirds - 6 months less a day
Posted by Ron Neal on Wednesday, February 4th, 2015 at 3:53pm.
Snowbirds – Is it okay for Canadians to stay in USA 120 days annually, or is the limit 6 months less a day?
While it may be okay to spend 6 months less a day south of the border in the USA, be careful about the impact that may have on your tax liability.
In a recent article which appeared on CBC News' British Columbia website, it was suggested that Canadian citizens are only allowed to spend 120 days in the United States each year. For clarification purposes, the Canadian Snowbird Association reminded travelers to the U.S. that this information is incorrect.
Under current policy, eligible Canadian citizens may spend up to six months less a day, in the United States, in any 12 month period. From a tax perspective, long-term visitors who typically spend four or more months in the U.S. each calendar year may be deemed resident aliens for tax purposes. In order to be treated as a non-resident alien, these individuals need to claim a "closer connection" to Canada by filing IRS Form 8840 annually.
Further, the CBC News article also discussed the Entry/Exit Initiative, a bi-national border program in which entry and exit data will be shared on individuals traveling between Canada and the United States. While this initiative was scheduled to be expanded on June 30, 2014, to include Canadian and American citizens, the necessary legislative and regulatory changes have not been implemented. At present, the Entry/Exit Initiative is not fully operational.
Please contact us anytime or more information on this subject or on foreign property ownership and associated tax implications that you really should know!
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