How do I calculate the amount
of days I can stay?
The two most important formulas
are the immigration and tax
calculations. The immigration
formula is simpler: U.S. Customs
and Border Protection allows
Canadian residents to enter the
country as B-1/B-2 visitors. The
B-1/B-2 visas grant visitors up to
six months in the States, with a
strict exit date.
What about the tax-related
formula?
This one is more complicated.
The basic premise is that if you
spend too much time in the U.S.,
then you risk being deemed a
U.S. resident and could be taxed
as such. To figure it out, use the
Substantial Presence Test (SPT).
Add up the days you spend in the
States in the current calendar
year, plus one-third of the days
you spent there in the previous
calendar year, plus one-sixth of
the days spent in the calendar
year two years prior to the current
year. (Keep in mind that a day is
considered a calendar day—not a
24-hour period. So even if you
spend only a short period of
time in the U.S. on a particular
day, you need to count it in your
calculation.) If your total is 183
days or more, you may be deemed
a U.S. resident for tax purposes.
Travel Intel
Migratory Patterns
What snowbirds need to know
about flying south for winter without
overstaying their welcome
It’s a right of passage for many:
Retiring to winter south of the
border. But the sand and sun may
come at a price. If you stay in
the States beyond the established
limits, you could face stiff
consequences. We asked David A.
Altro, a Canada and U.S. licensed
attorney and managing partner
of ALTRO LLP, to answer some
questions about snowbirding.
With offices in both countries,
Altro and his colleagues specialize
in cross-border taxation, real
estate and immigration.
Why should snowbirds care
about days they spend outside
of Canada?
It’s extremely important for
them to accurately count how
Snowbirds
who miscount
their days or
ignore this
obligation
altogether
risk trig-
gering harsh
tax and
immigration
consequences
many days they spend south
of the border, wintering in
the sunshine. Snowbirds who
miscount their days or ignore
this obligation altogether
risk triggering harsh tax and
immigration consequences.
Are there any exemptions?
What happens if I go beyond
the allowed limits?
You could run afoul of American
immigration policy if you over-
stay. You could also be dinged on
taxes: If you spend too much time
there, you risk being deemed a
U.S. resident for tax purposes.
On the Canadian side, you’ll want
to watch how much time you can
spend outside of Saskatchewan
before you lose access to free pro-
vincial health care.
If your SPT total is more than
120 days but less than 182
days, you should file for a
Closer Connection Exemption
(IRS Form 8840). The exemption
shows that you have a closer
connection to a country other
than the U.S. and thus shouldn’t
have to pay taxes like a resident.
You’ll be eligible if you spend
182 days or fewer south of the
border in any individual calendar
year. But you’ll also have to meet
certain criteria to prove that
you have a closer connection to
Canada than the U.S.
CAA SASKATCHEWAN
Winter 2018
17