Canadian living in US, want to buy a car first and then move back -issues?

Hi,

I'm currently working in Texas (h-1b), but am a Canadian citizen. I
plan to move back to Canada in November/December, but first want to
buy a car in Texas (Infiniti G35, a BMW 3 series or a Passat CC) about
a month before I move and take it back to Canada (currently just have
an old civic).

Buying the infiniti or the BMW would be quite a bit cheaper in the
Texas, but what are some of the considerations?

Anyone know if there's an issue with driving it across the border if
you're moving back permanently? What about warranty issues once the
car is in canada?

Also about how much would it cost (and who are the providers) to have
the car put on one of those big car moving trucks and moved to canada
for me, since by the time I’m ready to leave the roads might be
getting icy up north.

Lastly if I buy a used car is there any way to avoid paying sales tax.
I think you only pay sales tax in Texas when you transfer the title,
but is doing this necessary since i'm moving to canada permanently? I
suppose it would be if i wanted to resell the car, but is there ay way
around this?

Thanks

On 9/28/08 2:55 PM, in article
,
" wrote:

Hi,

I'm currently working in Texas (h-1b), but am a Canadian citizen. I
plan to move back to Canada in November/December, but first want to
buy a car in Texas (Infiniti G35, a BMW 3 series or a Passat CC) about
a month before I move and take it back to Canada (currently just have
an old civic).

Buying the infiniti or the BMW would be quite a bit cheaper in the
Texas, but what are some of the considerations?

Anyone know if there's an issue with driving it across the border if
you're moving back permanently? What about warranty issues once the
car is in canada?

Also about how much would it cost (and who are the providers) to have
the car put on one of those big car moving trucks and moved to canada
for me, since by the time I¹m ready to leave the roads might be
getting icy up north.

Lastly if I buy a used car is there any way to avoid paying sales tax.
I think you only pay sales tax in Texas when you transfer the title,
but is doing this necessary since i'm moving to canada permanently? I
suppose it would be if i wanted to resell the car, but is there ay way
around this?

Thanks


Before you do anything contact a dealer in Canada that helps people import
cars. It is a mine field. American cars and Canadian cars are not exactly
the same and Customs has some very strict rules. You have to make
modifications to an American car when you when you import it. Supposed to
cost about $4,000 to a few hundred dollars worth of work. This is for
Canadian residents buying across the border. Just south of where I live
there all lot of US dealers more than happy to sell a car and they are up on
the regulations.

When we came back the rules were very different. You couldn't buy a car the
way you want to, but you could bring a car you owned back with you provided
you had been out of the country at least one year. I suggest you contact
Customs because you might be able to bring it back as Settler's Effects. I
seem to recall though you had to own the item for one year.

Good luck. With the US dollar dropping again, it may be cheaper again to
purchase your car in Canada.

--
--
Martha T2 Canada
1500mg. Metformin, 4mg. Avandia

wrote in message
...
Hi,

I'm currently working in Texas (h-1b), but am a Canadian citizen. I
plan to move back to Canada in November/December, but first want to
buy a car in Texas (Infiniti G35, a BMW 3 series or a Passat CC) about
a month before I move and take it back to Canada (currently just have
an old civic).

I too was in this situation. I brought both my vehicles back. I looked up
Canadian prices and no question about it, a good move and save me lots of
cash! I estimate I saved over $16,000 if I were to purchase the same ones
here when I did this. Actually sold one 3 years later for what I could buy
it for when I crossed!

The site you need to visit and read and research everything in detail is:

http://www.riv.ca/

If you have _ALL_ your paperwork in order and follow the directions in
detail it is easy going. Many people who live here go down for new or used
boats, cars and trucks. I even know one person that does it as a hobbie for
the extra cash. Even takes orders and has a business license! Gets BMWs,
Hummers and Vettes mostly.

Don't ask me why, but a GM made in Oshawa is cheaper in Portland than in
Oshawa. Probably because the canadian business environemnt isn't that
competative. Better leather and wheel rims on the US version too.

I also would not use Canadian Tire, I prefer the dealerships or specialists
for this type of inspection. Likely they ding you $40-$250 for headlight
issue or some dumb nuance. Numb nuts at CT didn't know it, but I had the
cars fixed up cheaper in the US before I came back, so I went to the dealer.

Lastly if I buy a used car is there any way to avoid paying sales tax.
I think you only pay sales tax in Texas when you transfer the title,
but is doing this necessary since i'm moving to canada permanently? I
suppose it would be if i wanted to resell the car, but is there ay way
around this?

If you buy a car for the purposes of export from the US, get temporary
plates and insurance to get to the border. Most states then will not
collect taxs nor require it registered. Alberta for example, $20 or
something for a temporary to transport license at the border. I didn't need
temporary plates to do this as I was insured and still had the US state
plates and insurance.

Short answer, nope on the taxes. The Canadian border people are more
interested in the GST/PST than they are in seeing your passport or ID. Last
time I went through doing Christmas shopping they recorded my VIN (and I was
clean and not importing this time and didn't ask for any ID at all. To
serve Ottawa and collect!

If the car is new, GST (and PST if your moving to a GST+PSTed province) is
worked on the Canadian dollar value of the purchase. If it is used, it is
based on a reasonable used price. If you cook the paperwork they will
adjust to market value or worse...hold you up.

There is also the A/C and RIV fee and the inspection costs. But it is still
a big savings.

You do save on taxes though. If you buy a pristine used vehicle in Texas
for say $20,000, then move to Canada to find the locals want $30,000 for a
rusted one. Well, GST+PST is cheaper on $20K than $30K. As they say on ING
adds, "Save your money!".

BTW, your household goods are not taxed if you have been there long enough.
They would question 20 new coffee makers from target clearnace or Ski-Doos
from Texas. But there are minimum absence requrements also. I exceeded
them, I think it is 5 years. I was in the USA for 9+. Had a real good
time too. Canadians will seem so backwards on what and how they think of
the USA.

Thanks

wrote in message
...
Hi,

I'm currently working in Texas (h-1b), but am a Canadian citizen. I

One last thing.

If you have a ROTH, cash it out BEFORE you come back. You contributions
come out tax free. And a small penalty and taxes on any gains. But one
hell of a lot cheaper than Canadian tax rates at any age. Once in Canada,
drop the US bucks into a US account. No sense in making banks rich on
exchange premiums.

Also look at the 401K. This is more complex. And well worth dropping a few
bucks for some serious tax advice. Some strategies here to save money:

- if you are older, say 55 then waiting might be better as if you are old
enough 401K withdrawals incur no penalties (59 1/2?), you pay the US taxes
later and get credit on Canadian taxes for foreign taxes paid. Works out
you get the Canadian rate but in two parts.

- if you are considerably younger two options:
- cash it out, incur the penalty and pay lower US taxes taking tax paid
cash to Canada with no taxes owed to Canada. Especially attractive if the
401K is fat and you are young.
- keep the US 401K and invest from abroad. It is what I do.

- if you anticipate making a real good salary in Canada, in the $100K
bracket and up, you can sort of roll over a 401K into a RRSP. It is a
tricky manoeuvre that can be done once you move back. Best to see a tax
accountant on this one but simplified it works this way:
You cash out the 401K and move the proceeds into the RRSP. You pay US
taxes and penalties. However the US taxes is a foreign tax credit on your
fat Canadian income. So it comes off of the high last dollar taxed rate.
Which reduces your taxable income. I call this the RRSP padding method. You
can't claim the penalty part though.

In the above, some items to influence the strategy.

- age
- will you ever go back to the US as a tax resident?
- belief in US dollar value versus Canadian toonie?
- how much will you make in subsequent years in Canada?
- current tax laws, see a tax advisor

In any case, do any financial stuff dated before your entry into Canada
unless it is the RRSP roll over option. This way the CCRA will not be up
your butt like a horny wasp in heat.

When you move cash money, no issues other than if interest or dividends are
paid past your re-entry date they are taxable in Canada.

Be careful with Ontario. They are in a snit. If you work in Ontario and
say move to less-taxed Alberta, Ontario is making rants on peoples RRSPs and
LIRA roll overs. Grreeeedy buggers.

One last point to be correct. If you have enough money to justify the
costs, do like Paul Martian. Setup an offshore company, move the money in.
Save a bundle on Canadian taxes. Shady, but legal if done right.

In any case, I am NOT a tax advisor. I just wrote this for your benefit and
thought. You should not substitute it for sound professional and current
tax advice. I never did do my US taxes, I paid someone to do it. And
likewise in Canada. Have ever since 1995 due to my tax complexity. It is
no longer in the realm of a part time tax prep/mortal any more.

On Sep 28, 11:13 pm, "Canuck57" wrote:
wrote in message

...
Hi,

I'm currently working in Texas (h-1b), but am a Canadian citizen. I

One last thing.

If you have a ROTH, cash it out BEFORE you come back. You contributions
come out tax free. And a small penalty and taxes on any gains. But one
hell of a lot cheaper than Canadian tax rates at any age. Once in Canada,
drop the US bucks into a US account. No sense in making banks rich on
exchange premiums.

Also look at the 401K. This is more complex. And well worth dropping a few
bucks for some serious tax advice. Some strategies here to save money:

- if you are older, say 55 then waiting might be better as if you are old
enough 401K withdrawals incur no penalties (59 1/2?), you pay the US taxes
later and get credit on Canadian taxes for foreign taxes paid. Works out
you get the Canadian rate but in two parts.

- if you are considerably younger two options:
- cash it out, incur the penalty and pay lower US taxes taking tax paid
cash to Canada with no taxes owed to Canada. Especially attractive if the
401K is fat and you are young.
- keep the US 401K and invest from abroad. It is what I do.

- if you anticipate making a real good salary in Canada, in the $100K
bracket and up, you can sort of roll over a 401K into a RRSP. It is a
tricky manoeuvre that can be done once you move back. Best to see a tax
accountant on this one but simplified it works this way:
You cash out the 401K and move the proceeds into the RRSP. You pay US
taxes and penalties. However the US taxes is a foreign tax credit on your
fat Canadian income. So it comes off of the high last dollar taxed rate.
Which reduces your taxable income. I call this the RRSP padding method. You
can't claim the penalty part though.

In the above, some items to influence the strategy.

- age
- will you ever go back to the US as a tax resident?
- belief in US dollar value versus Canadian toonie?
- how much will you make in subsequent years in Canada?
- current tax laws, see a tax advisor

In any case, do any financial stuff dated before your entry into Canada
unless it is the RRSP roll over option. This way the CCRA will not be up
your butt like a horny wasp in heat.

When you move cash money, no issues other than if interest or dividends are
paid past your re-entry date they are taxable in Canada.

Be careful with Ontario. They are in a snit. If you work in Ontario and
say move to less-taxed Alberta, Ontario is making rants on peoples RRSPs and
LIRA roll overs. Grreeeedy buggers.

One last point to be correct. If you have enough money to justify the
costs, do like Paul Martian. Setup an offshore company, move the money in.
Save a bundle on Canadian taxes. Shady, but legal if done right.

In any case, I am NOT a tax advisor. I just wrote this for your benefit and
thought. You should not substitute it for sound professional and current
tax advice. I never did do my US taxes, I paid someone to do it. And
likewise in Canada. Have ever since 1995 due to my tax complexity. It is
no longer in the realm of a part time tax prep/mortal any more.

Thanks for the advice.

What happens if I tell the people at the border that i'm just going
home to visit my parents, and just get the car across the border that
way? It's not like I'll have a lot of stuff in my car.

On Sep 28, 11:10*pm, "
wrote:
On Sep 28, 11:13 pm, "Canuck57" wrote:





wrote in message

...
Hi,

I'm currently working in Texas (h-1b), but am a Canadian citizen. I

One last thing.

If you have a ROTH, cash it out BEFORE you come back. *You contributions
come out tax free. *And a small penalty and taxes on any gains. *But one
hell of a lot cheaper than Canadian tax rates at any age. *Once in Canada,
drop the US bucks into a US account. *No sense in making banks rich on
exchange premiums.

Also look at the 401K. *This is more complex. *And well worth dropping a few
bucks for some serious tax advice. *Some strategies here to save money:

*- if you are older, say 55 then waiting might be better as if you are old
enough 401K withdrawals incur no penalties (59 1/2?), you pay the US taxes
later and get credit on Canadian taxes for foreign taxes paid. *Works out
you get the Canadian rate but in two parts.

- if you are considerably younger two options:
* *- cash it out, incur the penalty and pay lower US taxes taking tax paid
cash to Canada with no taxes owed to Canada. *Especially attractive if the
401K is fat and you are young.
* *- keep the US 401K and invest from abroad. *It is what I do.

- if you anticipate making a real good salary in Canada, in the $100K
bracket and up, you can sort of roll over a 401K into a RRSP. *It is a
tricky manoeuvre that can be done once you move back. *Best to see a tax
accountant on this one but simplified it works this way:
* *You cash out the 401K and move the proceeds into the RRSP. *You pay US
taxes and penalties. *However the US taxes is a foreign tax credit on your
fat Canadian income. *So it comes off of the high last dollar taxed rate.
Which reduces your taxable income. *I call this the RRSP padding method. You
can't claim the penalty part though.

In the above, some items to influence the strategy.

* *- age
* *- will you ever go back to the US as a tax resident?
* *- belief in US dollar value versus Canadian toonie?
* *- how much will you make in subsequent years in Canada?
* *- current tax laws, see a tax advisor

In any case, do any financial stuff dated before your entry into Canada
unless it is the RRSP roll over option. *This way the CCRA will not be up
your butt like a horny wasp in heat.

When you move cash money, no issues other than if interest or dividends are
paid past your re-entry date they are taxable in Canada.

Be careful with Ontario. *They are in a snit. *If you work in Ontario and
say move to less-taxed Alberta, Ontario is making rants on peoples RRSPs and
LIRA roll overs. *Grreeeedy buggers.

One last point to be correct. *If you have enough money to justify the
costs, do like Paul Martian. *Setup an offshore company, move the money in.
Save a bundle on Canadian taxes. *Shady, but legal if done right.

In any case, I am NOT a tax advisor. *I just wrote this for your benefit and
thought. *You should not substitute it for sound professional and current
tax advice. *I never did do my US taxes, I paid someone to do it. *And
likewise in Canada. *Have ever since 1995 due to my tax complexity. *It is
no longer in the realm of a part time tax prep/mortal any more.

Thanks for the advice.

What happens if I tell the people at the border that i'm just going
home to visit my parents, and just get the car across the border that
way? It's not like I'll have a lot of stuff in my car

How are you going to get it registered and insured in Canada?

wrote in message
...
On Sep 28, 11:13 pm, "Canuck57" wrote:
wrote in message

...
Hi,

I'm currently working in Texas (h-1b), but am a Canadian citizen. I

One last thing.

If you have a ROTH, cash it out BEFORE you come back. You contributions
come out tax free. And a small penalty and taxes on any gains. But one
hell of a lot cheaper than Canadian tax rates at any age. Once in
Canada,
drop the US bucks into a US account. No sense in making banks rich on
exchange premiums.

Also look at the 401K. This is more complex. And well worth dropping a
few
bucks for some serious tax advice. Some strategies here to save money:

- if you are older, say 55 then waiting might be better as if you are
old
enough 401K withdrawals incur no penalties (59 1/2?), you pay the US
taxes
later and get credit on Canadian taxes for foreign taxes paid. Works out
you get the Canadian rate but in two parts.

- if you are considerably younger two options:
- cash it out, incur the penalty and pay lower US taxes taking tax
paid
cash to Canada with no taxes owed to Canada. Especially attractive if
the
401K is fat and you are young.
- keep the US 401K and invest from abroad. It is what I do.

- if you anticipate making a real good salary in Canada, in the $100K
bracket and up, you can sort of roll over a 401K into a RRSP. It is a
tricky manoeuvre that can be done once you move back. Best to see a tax
accountant on this one but simplified it works this way:
You cash out the 401K and move the proceeds into the RRSP. You pay US
taxes and penalties. However the US taxes is a foreign tax credit on
your
fat Canadian income. So it comes off of the high last dollar taxed rate.
Which reduces your taxable income. I call this the RRSP padding method.
You
can't claim the penalty part though.

In the above, some items to influence the strategy.

- age
- will you ever go back to the US as a tax resident?
- belief in US dollar value versus Canadian toonie?
- how much will you make in subsequent years in Canada?
- current tax laws, see a tax advisor

In any case, do any financial stuff dated before your entry into Canada
unless it is the RRSP roll over option. This way the CCRA will not be up
your butt like a horny wasp in heat.

When you move cash money, no issues other than if interest or dividends
are
paid past your re-entry date they are taxable in Canada.

Be careful with Ontario. They are in a snit. If you work in Ontario and
say move to less-taxed Alberta, Ontario is making rants on peoples RRSPs
and
LIRA roll overs. Grreeeedy buggers.

One last point to be correct. If you have enough money to justify the
costs, do like Paul Martian. Setup an offshore company, move the money
in.
Save a bundle on Canadian taxes. Shady, but legal if done right.

In any case, I am NOT a tax advisor. I just wrote this for your benefit
and
thought. You should not substitute it for sound professional and current
tax advice. I never did do my US taxes, I paid someone to do it. And
likewise in Canada. Have ever since 1995 due to my tax complexity. It
is
no longer in the realm of a part time tax prep/mortal any more.

Thanks for the advice.

What happens if I tell the people at the border that i'm just going
home to visit my parents, and just get the car across the border that
way? It's not like I'll have a lot of stuff in my car.

You will not be able to register it until taxes are paid. And if you get
pulled over and the plates don't match that fine is not trivial.

The government screws up peoples lives all the time, and they screw up
spending too! But one thing they don't screw up on is the revenue side.
You are in Canada a tax sheep, just good for the fleecing. The only real
way to cheat them is to go offshore like Paul Martian, but you have to have
enough cash to justify the expense.

I'm currently working in Texas (h-1b), but am a Canadian citizen. I
plan to move back to Canada in November/December, but first want to
buy a car in Texas (Infiniti G35, a BMW 3 series or a Passat CC) about
a month before I move and take it back to Canada (currently just have
an old civic).

A Canadian friend bought a 2004 BMW 325 Convertible on EBay from Kentucky.
He had it shipped to the border ($1250) and met the truck there.
Check he www.riv.ca
for the details and forms to fill out. RIV fee $ 205.00

We've brought in 2 vehicles this way and its relatively simple.

While doing the RIV thing, there is provision made for you to phone them the
VIN and they'll pre-check it to make sure its eligible for importation.

You'll have to get BMW (etc)USA to give you a "recall letter" to ensure it
hasn't been recalled and if so, repaired.

The warranty won't be honored in Canada apparently. Canadian Tire or the
BMW dealer in Canada may have to make some mods if it hasnt got the CANADIAN
Highway safety sticker(s) on it

On Sep 29, 11:16 pm, "Rudy" wrote:
I'm currently working in Texas (h-1b), but am a Canadian citizen. I
plan to move back to Canada in November/December, but first want to
buy a car in Texas (Infiniti G35, a BMW 3 series or a Passat CC) about
a month before I move and take it back to Canada (currently just have
an old civic).

A Canadian friend bought a 2004 BMW 325 Convertible on EBay from Kentucky.
He had it shipped to the border ($1250) and met the truck there.
Check he www.riv.ca
for the details and forms to fill out. RIV fee $ 205.00

We've brought in 2 vehicles this way and its relatively simple.

While doing the RIV thing, there is provision made for you to phone them the
VIN and they'll pre-check it to make sure its eligible for importation.

You'll have to get BMW (etc)USA to give you a "recall letter" to ensure it
hasn't been recalled and if so, repaired.

The warranty won't be honored in Canada apparently. Canadian Tire or the
BMW dealer in Canada may have to make some mods if it hasnt got the CANADIAN
Highway safety sticker(s) on it

Thanks again for the advice.

The warranty won't be honored?! Will infiniti g35 warranties be
honored? what car warranties will be honored?

I'm probably going to find a job in canada before i move and i'll make
one of my requirements that the company pay moving expenses, meaning
whatever expenses are necessary to get the car across the border
legally.

In article
,
" wrote:

The warranty won't be honored?! Will infiniti g35 warranties be
honored? what car warranties will be honored?

That depends on the manufacturer.
Some have said yes, some no.

Check with the Canadian manufactures HO, not a dealer.