BirdTalk Dear Bird Talk, FYI for you folks in the travel business, Lila and I finally left Vernon at around 1 p.m. yesterday (November 9) and drove to Osoyoos and the border crossing at Orville, Washington, arriving at about 5:30 p.m. It was dark then and we kept looking for the long line of tail lights that we were sure we would find waiting there, expecting at least an hour or two of delay getting across. Nothing...not one car, truck or bus...not a single other vehicle...contrary to everything we had heard. In fact, the border agent kept us there for an extra 10 mins to chat about deer and wild turkeys and ask us questions about living inMexico because he was bored. We laughed for miles. Rod MacDonald, BC and Mexico Ed.:We have been inundated with wonderful border stories.We will send a few off to the border security people, thanking them for their compassion and understanding. Dear Bird Talk, I continue to get conflicting opinions about how long I can safely stay in the U.S. One opinion is no more than 183 consecutive days or 183 days cumulative in a calendar year and the other opinion is 183 days per year, but calculated at 100% of current year days + 1/3 of the year prior days and 1/6 of the two years’ prior days. Barry Larson, Calgary, AB Ed.: Six months in any 12-month period – period! The calendar year and other calculations have nothing to do with how long you stay – they are tax rules. Obey the primary rule and you will never have to worry about the others.Where some people get caught is entering the U.S. in December one year and wanting to leave in November the following year. If they spend six months in the U.S., then leaving in November would mean that they would be in the U.S. for seven months of the last 12 months. Be careful about this, as the border guards can, and do, count months. Dear Bird Talk, Hi there! I went to theU.S. on Jan 14, 2021 and returned on July 1, 2021 (total 169 days) and I plan on going back to the U.S. on October 31 for another sixmonths (end of April). Am I allowed to re-enter the U.S., since it would be considered more than 180 days total for 2021? I looked into the taxes and spoke to a tax lawyer and he said that I just have to apply for the treaty exemption form before June 15, 2022 in order to avoid paying taxes in the U.S. for 2021. I’d appreciate any help/ suggestions regarding the immigration and/ or tax situation. Eva P., Toronto, ON Ed.:And here we go! Your suggested travel dates would total nine months in the prior 12-month period. Immigration allows you only six months, so you are breaking the law. When caught, and you undoubtedly will be, you will probably be banned from the U.S. for five or 10 years. As to the tax question, I am sure that your lawyer knows about the tax situations and can file for you. You should fill out a Form 8840 every year, though, as it simply declares your “Closer Connection” to Canada. Dear Bird Talk, We have just finished having our Canadian wills, POAs and directives done. Our lawyer advised that it would be best to have a U.S. POA done (in the U.S.), as a lot of places do not recognize a Canadian version and won’t allow them to be used. What are your feelings on this? Thanks. Ron and Jayne, Heritage Pointe, AB Ed.: Good advice from your lawyer. You do not need a U.S. will, but you should have a POA prepared in the jurisdiction where you will be residing. The reason is that you will want to have a POA in the form familiar to the persons whom you have to deal with in the event of an emergency. In any emergency, time is of the essence and you do not want to be arguing with someone over the form, its validity and its contents. Dear Bird Talk, I have reached the age where I can no longer travel to Florida for the winter and must sell my manufactured home in Bradenton. I purchasedmy home in the early 2000s and believe that it is worth more now with the improvements I have made, but don’t want any trouble with the U.S. government with capital gain or profits from the sale. I have also heard that the title transfer people may withhold 10% for a year, but that I can apply to get that back a year later. Can you provide your thoughts on this please? D M Smith, Stouffville, ON Ed.: Assuming that your manufactured home is on rental land, such homes are treated like, and registered like an automobile. Any profit, after having deducted the costs of improvements and any costs of the purchase and sale, should be reported to the IRS as a capital gain and tax paid thereon.Tax withholding is the norm and you would get it back, so you do not have to pay tax in both countries. The tax would be graduated up to a maximum of 20%. Dear Bird Talk, As an owner in Palm Desert, California, I was advised by a U.S. lawyer to have a U.S. Revocable Trust set up. When I die, it is supposed to make it easier to avoid probate and make it simpler for my two children to manage and sell. My Canadian accountant thinks that I have made a mistake and that this will cause issues with the CRA. So now I am confused. Should I remove the Trust agreement so that I can sell the property? Any advice or suggestions would be most appreciated. Linda Seifred, Kelowna, BC Ed.:The U.S. lawyer is correct with respect to the issues that he has addressed, but may not be aware of the issues addressed by your Canadian accountant. I would be guided by the advice from your Canadian accountant, whom I would expect has had similar experience with other clients. 8 | www.snowbirds.org
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