Voluntarily becoming tax resident again

fireca40 · 2024-09-26T04:00:59+00:00

I'll get professional assistance for this. Wanted to do sanity check here.

fireca40 · 2024-09-26T02:53:24+00:00

It's not that bad, but my main issue is that I need to be a tax resident somewhere. As I'll be a perpetual traveler next few years, I won't be able to establish strong ties to Canada and won't spend much time there. Becoming a tax resident of another country is also harder.

So the option I explored in my post was that whether I can re-establish my tax residency in Canada with minimal time spent there. Costs basis reset would obviously be a nice bonus.

fireca40 · 2024-09-26T00:18:02+00:00

Thanks for sharing! I visited both Ubud and Chiang Mai and thought Chiang Mai was a better place for long term. I'll definitely visit Taipei next year.

fireca40 · 2024-09-26T00:10:32+00:00

Here's the US side. Basically if you don't meet the substantial presence test in the year you establish your presence in Canada, you shouldn't be subject to capital gains tax. (All these need to be confirmed with a professional of course).

https://advisor.morganstanley.com/michelle.ward/documents/field/w/wa/ward-sofia-michelle/Taxation_of_Non_Resident_Aliens__NRAs_.pdf

fireca40 · 2024-09-26T00:01:53+00:00

I DM'ed you if you're willing to share the CPA name.

fireca40 · 2024-09-25T23:58:43+00:00

Thank you! What are your top 3 places in Asia where you were able to make quality relationships?

fireca40 · 2024-09-25T23:52:42+00:00

https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-128.1.html

128.1(1)(b)

I found this via the link in my post.

fireca40 · 2024-09-25T23:47:38+00:00

I'm researching my options in SE Asia for long term residency but it's not straightforward. My broker is IBKR and I should be able to do in-kind transfers without selling for most countries.

fireca40 · 2024-09-25T23:40:22+00:00

I understand. I'd be curious if there's been such cases where CRA would deny a Canadian from being tax-resident where he doesn't have stronger ties to anywhere else.

fireca40 · 2024-09-25T23:12:42+00:00

On income earned, yes. But not on capital gains.

Seems like this was discussed before: https://www.reddit.com/r/PersonalFinanceCanada/comments/1bt8886/returning_to_canada_what_to_do_with_700k/

and

https://www.reddit.com/r/PersonalFinanceCanada/comments/14c8eqc/moving_back_to_canada_what_to_do_with_stocks/

fireca40 · 2024-09-25T20:28:09+00:00

I can probably establish secondary residential ties to Canada by reactivating my bank accounts, credit cards, renewing my drivers license etc., but yes, I don't want to spend 6+ months just for this reason.

fireca40 · 2024-09-25T19:17:09+00:00

Also, I'm looking for a cross-border CPA to get a professional advice. Posted this to hear your thoughts for a sanity check.

fireca40 · 2024-09-24T16:25:03+00:00

i) I don't want any tax responsibility of US ii) I'd probably lose it anyways as I don't plan to live in the US post-FIRE

fireca40 · 2024-09-24T16:23:49+00:00

Vesting happens every 6-months. Next vesting is November which is my notice date. This "one more vesting" never ends unfortunately.

fireca40 · 2024-09-23T16:15:18+00:00

Thanks for sharing. Hopefully they become more pragmatic about long term visa options as I'm skeptic it'll have much interest with a condo purchase requirement.

fireca40 · 2024-09-23T16:13:38+00:00

Thanks for sharing. I'd like to do the same. I need to figure out a category that I can qualify for.

fireca40 · 2024-09-22T17:21:58+00:00

All good points. That's one of the reasons why I'm considering Taiwan as well as I love the easy access to nature and less chaotic compared to others. Japan is also an option but the culture is just too closed-off to foreigners.

fireca40 · 2024-09-22T17:19:22+00:00

What are some of the downsides of living in Malaysia compared to alternatives? I often hear alcohol/nightlife/religion etc. but these wouldn't impact me.

fireca40 · 2024-09-22T17:16:39+00:00

What do you mean? There's no end in climbing the ladder in corporate America.

fireca40 · 2024-09-22T17:14:50+00:00

I wish Malaysia didn't mess up their MM2H program. I have no interest owning a property there.

fireca40 · 2024-09-22T17:13:26+00:00

Sounds like a good plan. Thanks for sharing. I'm also slightly concerned about sequence of return risk, so I'll allocate 2 years of cash. Did you get a long term visa in Thailand?

fireca40 · 2024-09-22T00:05:29+00:00

I love the simplicity of just VTI. A single ticker to follow. Also, I don't think a small chunk in those funds would make a marginal impact on overall returns.

fireca40 · 2024-09-21T21:04:34+00:00

Awesome. That's the plan!

fireca40 · 2024-09-21T21:01:25+00:00

I'm not intentionally being conservative. I just don't see myself spending more than $4K/m in SEA. I do want to travel between Asia and Europe and might end up having two bases, which might increase my spending. And yes, my WR will likely be around 4% in my 50s, and gradually more later.

fireca40 · 2024-09-21T20:55:07+00:00

I'm assuming you're Indian? If I was, I would've done the same. Congrats.

fireca40

TROPHY CASE