CSANews 105

BirdTalk Dear Bird Talk, I took particular note of your editor’s comment in the fall issue which stated, “I have found no rationale for the many and varied decisions given by border guards.” You are so right! Here is a classic example. My wife and I spend just less than six months each winter in California from late October to late April. A few years ago, we spent more than 30 days back in Canada, from mid-December to mid-January. When we attempted to return to the U.S., a border guard at Montreal Trudeau Airport advised us that we would be exceeding the six-month maximum stay. His rationale: you have to be outside the U.S. for a full CALENDAR month before those days stop counting towards your annual maximum stay. Since you were physically present in the U.S. for at least one day in December, the full month of December counts towards your six-month maximum. Since you will be physically present in the U.S. for at least one day in January, the entire month of January counts towards your six-month maximum. In other words, his interpretation was that we were deemed never to have left the U.S. in both December and January, even though we had been out of the U.S. for more than 30 days. The U.S. border guard seized our Canadian passports, yelling “I’ve had it with you people! You are not U.S. citizens and you have NO RIGHTS!”We were then led to the secondary inspection area, where we were detained for almost two hours, narrowly avoiding missing our flight. Finally, a supervisor asked us a few perfunctory questions and told us we were free to go. It was a very stressful and anxious experience, all as the result of an uninformed, poorly trained and belligerent U.S. border guard. J.M. Thibault Haliburton, ON Ed.: We decided to print this letter as it clearly outlines the reality of border crossing. The “You have NO RIGHTS” wording is really true. We are foreigners trying to enter another country and it is a privilege to be able to do so. In 50 years of “back-and-forthing” to the U.S., I have only had one issue and that was with Canada Customs, not the U.S. Perhaps I have been lucky, but I do take a “Yes sir, no sir” attitude with me when I cross and try to be friendly. You should do the same. Dear Bird Talk, I know Canadians can’t work in the U.S. without a “green card,” but the definition of work has changed a lot lately. What about Canadians who “telecommute”? I work in software. This winter, I’ll be in Florida with my laptop and I’ll be earning a living while I’m there. So I’m working. I’m in the U.S. But I won’t be earning any money from any American company. I’m working for a Canadian company connected to a computer located in Ontario. The employer and customer are both in Canada. The work is happening in Canada. My paycheque comes from a Canadian company and is deposited into a Canadian bank. But I’m in the U.S. Am I breaking any rules? You seem to know the answers to so many snowbird questions, I’m hoping you can help us with this one. Todd Toronto, ON [That’s a fictitious name, in case I’m breaking any rules ‒ I don’t want to get in any trouble!] Ed.: Every situation is different, of course, but your situation appears to be fine. You are not taking a job from an American citizen and that is one of the primary criteria used in decisions that are made. Also, everything surrounding your employment is in Canada. I, personally, am in exactly the same boat and you do know my real name, so I would not worry. We are trying to address this somewhat grey factor in our Snowbird Visa, as well. Dear Bird Talk, The information in this section of CSANews is always very useful to snowbirds and others with some connection to the U.S. Could you please clarify your response to a recent letter in which you state that, “if you earn income in the U.S. you do have to file a U.S. tax return.” According to the Tax Convention between Canada and the U.S., there is the provision, for instance, that “Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.” Does that not suggest that the income derived from the U.S. can be declared in a Canadian tax return and the tax paid in Canada instead of the U.S.? One of the purposes of the Convention is to prevent double taxation, i.e. paying tax twice on the same income amount. Robert Blair Vancouver, BC Ed.: If you earn ANY income in the United States, you are required to file a U.S. tax return. This includes rental income for leasing your condo or park model, as well. There is a very effective tax treaty between Canada and the United States and, in most cases, you will be able to recoup any U.S. taxes which you pay on your Canadian tax return.We are aware that many people do “under the table” rental deals “Canadian to Canadian,” but we do not recommend that. If you are caught, the penalties can be severe. The taxes payable are usually minimal after deductions anyway, so have a chat with a U.S. accountant. Dear Bird Talk, My husband and I bought a home in St. Petersburg in 2014 and now drive there each fall and home in the spring. My question is, if we drive to Florida and spend three nights on the road each fall and three nights on the road coming home in the spring, do those nights on the road ‘in transit’ need to be counted toward the allowable maximum of 182 days in the U.S.? Sylvia Crothers Quispamsis, NB Ed.: Easy answer – “Yes”. Every day or part of a day counts towards your limit. Dear Bird Talk, As a Canadian snowbird, I fill out an 8840 annually. On occasion, we have taken a cruise which originates in the U.S. How is this time included inmy Form 8840? Of particular concern is a recent Alaska cruise which originated and ended in Seattle, WA, but could be in the Caribbean or to Hawaii. Victor Tkachuk Calgary, AB 10 | www.snowbirds.org

RkJQdWJsaXNoZXIy MzMzNzMx