Bird Talk Dear Bird Talk, Is there a way to estimate the amount of provincial health plan coverage for health costs incurred in the U.S.? The reimbursement amount is important to know, in order to help snowbirds choose a deductible amount when they are buying out-of-country insurance. Snowbirds, beware! I received a disappointing 14% ($980) from OHIP of the CDN$7,000 cost of my emergency retinal surgery in the U.S. I had chosen an insurance deductible of $10,000 to reduce my premium, so I had to rely on OHIP to help cover my costs. I also learned that the cost of my surgery would have been many times more expensive if I went to a hospital, instead of visiting an ophthalmologist. I had wrongly assumed that OHIP would reimburse me for the approximate cost of the same surgery in Ontario, but it appears that it did not. There is no way that a vitrectomy and retinal tear surgery with an ophthalmologist and anesthesiologist only costs $980 in Ontario. This must mean that snowbirds save OHIP – and perhaps other provincial health plans – an enormous amount of money in health-care costs if they require medical care while travelling abroad. If this is true, Canada should be supporting snowbirds in any way that they can. Brad Gris Binbrook, ON Ed.: The reimbursement rate should not be a factor in determining your deductible. If you purchase out-of-country medical insurance and your medical insurance provider pays your claim, they will receive the reimbursement, not you. You will not be able to collect the reimbursement amount and apply it to your deductible. Your deductible amount should only reflect what you can afford to pay in the event of a medical emergency; nothing else. Your comments regarding Canadian snowbirds actually saving Canadian taxpayers money are well stated and well received. This is precisely what the CSA has been arguing for more than 30 years. Dear Bird Talk, Did CANADIAN SNOWBIRDS ever find out if you can leave your RV in the U.S. yearround? Or do you have to bring it home after six months?????? We have a membership at Port Susan Camping Club in Washington state which we use all year round – never exceeding 120 days – but the trailer stays down there all year. Do we have to bring the trailer back every six months? Sandy Guthrie Abbotsford, BC Ed.: If you leave your vehicle (or trailer) in the United States for longer than 12 months, the United States government assumes that you have imported it. Taxes and import duties may apply. You should also have a candid discussion with your RV insurance provider and read your policy to see what limitations the policy contains concerning time outside of Canada. Dear Bird Talk, We are selling our winter home in Arizona after 20 years. Are we able to bring to Canada some of our belongings purchased in the U.S., but long ago? We don’t have invoices, nor do we know exactly when they were purchased during the 20 years. Will we have to pay duty on these items? Are there special forms we need in order to bring personal belongings across the border? I tried calling customs but did not get a suitable answer. Sandi Elliott Calgary, AB Ed.: Duty and tax will be payable on these items beyond your personal exemption. There are no specific forms to complete if you will be arriving at the border with these things. It is recommended that you compile an itemized list of everything you are bringing back to Canada. Canada Border Services Agency will assess the applicable duty and taxes on these items at a depreciated value. I would also call the Canadian border station where you will be crossing and advise them you will be bringing your personal effects back to Canada; they have often been very helpful in allowing personal goods to cross. Dear Bird Talk, My husband and I have been spending our winters in Florida for a number of years. We are usually in the U.S. for fewer than 182 days. However, last year we went over by about 20 days and filed a Form 8840 for the first time. This year, if we travel when we want to, we will again be over by about 25 days. As long as we file the Form 8840, are we okay to stay in the U.S. for the extra 25 days, or should we shorten our trip? Judy Fisher Inverary, ON Ed.: Filing an 8840 form does not grant you permission to stay in the United States for longer than 182 days or six months. The IRS 8840 Form has absolutely nothing to do with customs and immigration; it is a tax form. If you intend to stay in the United States for longer than 182 days, you are intending to violate the terms of your verbal B2 visitor visa, which could lead to you being barred from entering the United States in the future. There are many examples of persons being barred from re-entry to the United States for two years, five years or even for life. Please restrict your trips to six months and definitely file the Form 8840. Dear Bird Talk, I own my own place in the U.S. and live there for the winter months. I’ve bought a vehicle and have it registered and insured in the state in which I own property. I use this vehicle as a daily driver while I’m in the states for the winter. I would like to drive it back to Canada for the summer months and use it as a daily driver and drive it back to the U.S. again for the winter months. Is this allowed? Randall Hiebert Grand Forks, BC Ed.: No, unfortunately you cannot bring your U.S. vehicle into Canada temporarily. If you want to bring your U.S. titled and registered vehicle into Canada, you will have to export it from the United States and import it into Canada, pay the applicable duties and taxes and register the vehicle in your home province. Dear Bird Talk, Realizing a profit from selling a car isn’t taxed as a “capital gain,” so why is a house which is registered as a vehicle, as per my requirement to buy a licence sticker for my front window from the Florida Department of Highway Safety? Which country is requiring me to pay this capital gain? Canada or the U.S.? Brent Murday Ontario Ed.: In accordance with the U.S. tax code, you are required to disclose the sale of the property and pay capital gains tax, if applicable. Similarly, this gain would need to be disclosed on your Canadian tax return as well, but you may be able to use foreign tax credits to offset or minimize any tax owed in Canada. To be succinct, selling a car for a profit will attract tax in both Canada and the U.S., but this is rare and the CRA does not pay much attention to the sale of a normally depreciating asset. 8 | www.snowbirds.org
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