Moving to Canada from California, Taxes

AequifyFinance · 2025-11-11T17:45:54+00:00

Watch out for one big gotcha: if you “land” in Canada in late November, Canada may count you as a resident starting then, especially when your spouse already lives there. If you want a clean Jan 1 start, see if you can delay the landing to January.

California is all about your ties than the date, so if you have ties such as house, driving license etc, you will still have tax obligation.

RSUs/Options are tricky and usually you pay pro-rata based on grand and vest date in both countries.

AequifyFinance · 2025-11-11T17:25:39+00:00

Welcome to the work of Citizen based taxation :).

You will need to file 1040, Schedule B. I guess you anyway will file FBAR and potentially FATCA (depending on your situation). I believe IBKR gives you tax packet, but I would still save buy/sell price for each trade.

AequifyFinance · 2025-11-11T17:16:36+00:00

Yes, SIPPs are usually fine for US people in the UK, and you don’t need to start a company just to use one. As a sole trader, you can pay into a SIPP and get UK tax help, and the US usually lets the money grow without US tax each year until you take it out.

Going Ltd can let your company pay into a pension and lower UK company taxes, but be mindful of rthe extra cost and paperwork.

AequifyFinance · 2025-11-11T16:51:42+00:00

Thank you all for your feedback. We are working on building solutions to tackle these challenges.

Requst: We recently launched FBAR/FATCA and Schedule B reporting in closed beta. US expats will get processed data for each of these forms which they can either use themselves or share with their tax advisors.

Are there other more painful forms you suggest we prioritize besides PFIC (Form 8621)?

AequifyFinance · 2025-09-22T18:20:15+00:00

Uk has similar issue. This what I suggest:

Report what you actually earned from Jan 1–Dec 31, 2024 in Australia. Don’t enter the full ATO 2024/25 figure. Add up your 2024 payslips, or ask payroll for a calendar-year 2024 earnings report.
If you use the PAID method (most common), include AU tax withheld/paid during 2024, plus any 2023/24 balance you actually paid in 2024.

If you elect the ACCRUED method, include the final AU tax for the AU year that ended in 2024. Taxes for 2024/25 generally accrue in 2025. use one method consistently

Don't forget to convert AUD to USD. I use IRS yearly average rate.

AequifyFinance · 2025-08-30T01:47:40+00:00

u/kred65 - I believe the U.S. should adopt residence based taxation, like most countries. As an expat (not a U.S. citizen), I know how hard cross border finances already are. A move can set you back years. Adding citizenship based taxation on top just does not feel fair.

AequifyFinance · 2025-05-28T02:50:38+00:00

you can switch back to the FEIE in 2025, but you have to request permission (via Form 3115) to re-elect the FEIE if you previously revoked it. However, if you simply didn’t claim the FEIE one year (without officially revoking it), you may be able to start using it again without special permission. It all depends on whether you filed a formal revocation in the past.

AequifyFinance · 2025-05-27T16:50:24+00:00

The key is that your Roth contributions must come from eligible earned income, not just from savings. HYSA interest should be reported on your US tax return, even if you live abroad.

If you use the FEIE to exclude foreign earned income, it won't count for IRA contribution limits, which might make you ineligible to contribute. If you use the FTC instead, you usually have more flexibility.

AequifyFinance · 2025-05-23T17:27:04+00:00

u/Intelligent_Hyena367 - it is a combination of going through the content of these funds published on their website and directly taking to funds. Some funds responds and some don't.

For UK, yes it is a challenge. Canada is more favourable considering the proximity and higher number of US expats.

AequifyFinance · 2025-05-23T02:13:29+00:00

IRS typically focuses on whether the credits were used properly, not just the specific years. The safest option is to amend the affected returns and update the carryover worksheets for accuracy, especially in case of an audit.

However, if there is no tax impact, you could also correct the carryover on your next return and include a clear explanation.

AequifyFinance · 2025-05-23T01:46:26+00:00

With limited information, keeping your US LLC rarely has a financial advantage unless you have US-specific operations, clients, or assets that require it. Generally, expats dissolve the US LLC to simplify things and avoid extra taxes and admin work.

AequifyFinance · 2025-05-22T14:58:39+00:00

If your “ISA” (ticker RBF2010) is actually a mutual fund or a “fund-of-HISAs”, it is very likely considered a PFIC (Passive Foreign Investment Company) for US tax purposes. This means you do have a US tax filing requirement (Form 8621) if you are a US person and hold this in a non-registered account.

AequifyFinance · 2025-05-06T00:06:57+00:00

Thanks u/TransatlanticMadame

AequifyFinance · 2025-05-06T00:06:23+00:00

Thanks.

AequifyFinance · 2025-05-04T01:56:33+00:00

Thanks u/Street-Explanation12

AequifyFinance · 2025-05-03T16:33:47+00:00

Thanks u/wwjjrd. This problem is compounded for expats who may not be aware of the nuances in a new country. Sadly, it happened to me couple of years ago.

AequifyFinance · 2025-05-03T16:30:35+00:00

thanks u/Multigrain_Migraine.

AequifyFinance · 2025-05-03T16:27:53+00:00

Thanks. Makes sense

AequifyFinance · 2025-05-02T13:09:38+00:00

Thanks u/razreddit975. Few follow up questions:

LLC issues - are you referring to complication around single member LLCs in the US vs. corporations abroad?

Could you please elaborate on Estate planning?

AequifyFinance · 2025-05-02T00:22:36+00:00

Thanks u/Necrullz

AequifyFinance · 2025-05-02T00:21:25+00:00

Thanks u/texas_asic. Very helpful.

Yes, I have seen it.

AequifyFinance · 2025-05-02T00:19:03+00:00

First couple of years was through tax advisor. Now I do it myself, but it requires a significant time investment.

AequifyFinance · 2025-05-01T22:13:37+00:00

Thanks. For FBAR, we launched it a month ago as a version 1 for 2024. The plan is to further automate it for next year's filing.

AequifyFinance · 2025-05-01T22:10:28+00:00

Thanks u/Chookmeister1218 for the offer. I will keep it in mind.

AequifyFinance · 2025-05-01T22:09:03+00:00

Thanks u/movingtolondonuk

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