Brandon Cross-Border Tax

International Ties in a Growing Suburb

Brandon's growth has drawn people from across the country and beyond. Some are Canadians who moved for a job in the metro area and settled in Brandon for the schools. Some are Americans who lived and worked in Canada for years. Others work from home for a Canadian employer or own property or accounts abroad. BOMCAS is based in Edmonton and works with Canadian and US tax regularly, and we help Brandon families with both sides remotely.

Treaty and residency basics are on our South Dakota cross-border tax page, and this page applies them to Brandon households with Canadian or other foreign ties.

Canadians Who Moved Here

A Canadian who moves to Brandon usually becomes a US resident for tax purposes and a non-resident of Canada. The final Canadian return reports the departure date, and certain property is treated as sold at fair value on that date. Canadian real estate, RRSPs and some other assets are excluded from that deemed sale. Keeping a home or close ties in Canada can make residency uncertain, and the treaty tie-breaker rules may decide which country has the stronger claim.

RRSPs, TFSAs and RESPs

An RRSP can usually stay in Canada, and the treaty lets income grow without current US tax. A TFSA does not have tax-free status in the US, and its income is generally taxable on a US return. An RESP is generally not tax-favoured in the US either and may need extra reporting. Families with children in Brandon Valley schools who kept an RESP should review it.

Remote Work for a Canadian Employer

A Brandon resident working remotely for a Canadian company is generally taxed in the US on that income, because the work is done here. Canada may still withhold tax if payroll is set up incorrectly. An arrangement as an independent contractor or through a US payroll provider can avoid this. We review the setup and file Canadian returns to recover tax withheld in error.

Canadian Property

A Canadian rental property kept after moving remains taxable in Canada, with a non-resident withholding or an election to file a return reporting net rent. The US also taxes the rent, with a credit for Canadian tax paid. Selling the property later requires a Canadian clearance certificate.

Foreign Accounts and Reporting

US residents with foreign accounts totalling more than $10,000 at any point in the year must file an FBAR. Larger holdings may require Form 8938, and Canadian mutual funds can trigger PFIC reporting. These forms are required even when no tax is due.

Families From Elsewhere

Families from other countries who settled in Brandon may have relatives sending gifts, inherited property abroad or pensions earned before moving. Gifts from foreign individuals over $100,000 in a year must be reported on Form 3520. Foreign pensions may be taxable here, depending on the treaty.

What We Handle

US returns for new residents with foreign income.
Canadian departure and non-resident returns.
FBAR, Form 8938 and PFIC reporting.
Treaty positions and foreign tax credits.

US Citizens Who Lived in Canada

Americans who returned to the US after years in Canada may have missed US returns or FBARs while abroad. The IRS has streamlined procedures for some people whose failure to file was not wilful, which can reduce or eliminate penalties. We prepare the returns and statements needed.

Children With Dual Citizenship

Children born in Canada to American parents may hold both citizenships. They file US returns when their income requires it, and their Canadian accounts may need reporting.

Before moving to or from Canada, a planning review of accounts, property and timing can prevent double tax and missed forms in the year of the move.