New border rules spell trouble for snowbirds

Canada and the U.S. are implementing new border rules, and how officials will track travel has serious implications for snowbirds, reports the Financial Post.

Read: Tax cheats beware: CRA launches snitch line

Starting June 30, Canada and the U.S. will scan travellers’ passports as they enter and exit the country. Before, the countries only scanned passports upon a traveller’s entry, says FP.

If you have any snowbird clients who are used to estimating the number of days spent inside the U.S., this could have serious consequences for their tax return. Now officials will be able to check their dates for themselves.

Canadians can spend a maximum 183 days in the U.S. before being considered a U.S. resident, and having to pay tax on their global income. Those spending more time down south may also lose their Canadian residency status and have to pay tax as though they had sold all their assets.

Read more here.

For more resources on snowbirds check out:

Should snowbirds live in the U.S.?

Government may limit aid to dual citizens

How the CRA treats snowbirds

Share this retirement guide with clients

Got Snowbirds? Check these tax changes

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.