Any AC pilots live in the U.S.?

Caly · Post by **Caly** » Fri May 18, 2007 10:17 pm

Just curious if anyone knows of any AC pilots that live in the U.S, or know if this would even be possible, and commute up to Canada? Assuming dual citienship, greencard, or whatever.

Caly · Post by **Caly** » Fri May 18, 2007 10:31 pm

Sorry, spelling mistake, i'm half in the bag...

Stinky · Post by **Stinky** » Sat May 19, 2007 3:08 am

I've heard that there are. From a tax standpoint you would be further ahead. You wouldn't pay tax in Canada if you are not a resident, you would pay U.S. tax which in most states would be about 2% less than in Canada. Another huge advantage is the interest on your mortgage is tax deductable. Also cheaper gas, groceries and no more GST.
It would be a good time to make the move within the next coule of years with the canadian dollar at record highs and the U.S housing market starting to tank.

yycflyguy · Post by **yycflyguy** » Sat May 19, 2007 5:24 am

Stinky wrote:I've heard that there are. From a tax standpoint you would be further ahead. You wouldn't pay tax in Canada if you are not a resident, you would pay U.S. tax which in most states would be about 2% less than in Canada.

Depending on your tax bracket I believe it could be much more than just a 2% discount on taxes. Do you have any links to support this?

tonysoprano · Post by **tonysoprano** » Sat May 19, 2007 5:33 am

We have many pilots and fa's living along the eastern seaboard, from the Boston area down to Florida (several more in the Caribean) and a handful out west in Arizona. Some have to take two flights to get to work (YYZ) but they don't mind.

stratcat · Post by **stratcat** » Sat May 19, 2007 9:06 am

can you live in the US without a greencard if your employed in canada. Kind of like the snowbird travellers do?

flyer_146 · Post by **flyer_146** » Sat May 19, 2007 1:09 pm

I think you're confused about the greencard, which is a visa allowing you to obtain paying employment. It has nothing to do with the right to reside in the U.S., which is based solely on your right to enter the U.S. (i.e. no criminal record). Canadian citizens can stay in the U.S. for an indefinite period as long as they can show proof of funds (i.e. AC job).

Your only added costs would be as a non-resident of Canada, you would have to purchase private medical insurance with rates dependent on your existing health and age (maybe $3k /year per person depending on what level of coverage you wish to buy).

I think the tax savings would be far higher than 2% for an income of $100k or more. As far as state tax, some states have a rate of 0% on personal incomes. I cannot imagine why anyone would choose to live in Canada and pay 50% tax to support Canada's social programs when a 20% tax rate would allow them to live in beautiful home with maybe a Porshe in the driveway and a Mooney to commute to YYZ. It seems a no brainer.

Dave Grohl · Post by **Dave Grohl** » Sat May 19, 2007 2:13 pm

flyer_146

I believe the green card grants you the right to both work AND reside in the US...if you don't have one then I believe that there is a 183 day limit on the time you may be present state-side.

I am not a lawyer, and this topic can become incredibly convoluted with respect to immigration and tax issues, so I would advise anyone thinking of doing this consult with an attorney and an accountant.

Here's some good info on the green card, or the United States Permanent Resident Card, as it's known now:

http://en.wikipedia.org/wiki/United_Sta ... ident_Card

Cheers...

Stinky · Post by **Stinky** » Sat May 19, 2007 3:04 pm

You definately cannot live in the U.S. without being a U.S. citizen or holding a permanent resident visa (greencard)
I'd love to see the looks on the U.S. customs officers as you pull up in your U-haul and tell them you're moving to the U.S. indefinately.
As far as tax savings, how do you plan on convincing revenue canada that you shouldn't pay any tax since you've decided to illegally reside in the U.S. Also, how do you plan on filing a U.S. tax return without a SSN. Check the IRS website for who is required to file a return, you won't see the statement "foreign citizens who illegally reside in the U.S. to avoid paying taxes in their own country"
I've been researching this quite a bit over the years as I am going through the process for a family based immigration. It is far from a no-brainer.
I'll try to find an interesting article comparing U.S. and Canadian taxes, it's lower in the U.S. but surprisingly not as much as you would think.

yycflyguy · Post by **yycflyguy** » Sat May 19, 2007 3:37 pm

I thought the 183 day rule was for those who wanted to maintain Canadian residency status and its associated benefits of health care. As Canada and the US have a signed tax treaty I believe you can pay US taxes at the lower rate rather than the Canadian rates and report your IRS filings with Revenue Canada.

Several Air Canada pilots fought and won a case to only be taxed by Canada while earning money in Canadian airspace. Obviously these pilots live in other, more tax-friendly lands which include the US. How do the snowbirds do it? There are no restrictions for Canadians to buy property in the US and I believe they have the right to spend as much time enjoying their property as they desire.

Clarification?

pauliewalnuts · Post by **pauliewalnuts** » Sat May 19, 2007 4:45 pm

If you intend to live in the U.S and work in Canada, this is fine but you must be a legal Permanent Resident of the U.S (green card holder) to do this. There is no way around it, I have been through the immigration process, and that is the requirement. Don't confuse the "snowbird" living in the U.S for 6 months of the year with Permanent Residence Status

pauliewalnuts · Post by **pauliewalnuts** » Sat May 19, 2007 6:07 pm

yycflyguy,

You are correct, Canadians can buy property in the U.S however, if a snowbird wishes to remain in the U.S longer than 6 months to enjoy their property they must have their stay extended through a local state department or CBP/immigration office.
Also, snowbirds might be subject to filing with the IRS based on certain rules that fall under the substantial presence test.

Dave Grohl · Post by **Dave Grohl** » Sat May 19, 2007 8:14 pm

yycflyguy wrote:I thought the 183 day rule was for those who wanted to maintain Canadian residency status and its associated benefits of health care. As Canada and the US have a signed tax treaty I believe you can pay US taxes at the lower rate rather than the Canadian rates and report your IRS filings with Revenue Canada.

Several Air Canada pilots fought and won a case to only be taxed by Canada while earning money in Canadian airspace. Obviously these pilots live in other, more tax-friendly lands which include the US. How do the snowbirds do it? There are no restrictions for Canadians to buy property in the US and I believe they have the right to spend as much time enjoying their property as they desire.

Clarification?

Hey yycflyguy, I found this excerpt from the website of a Vancouver tax accountant familiar with these issues, which addresses the Canadian aircrew being taxed while working in Canadian airspace issue that you mentioned:

Canada taxes on RESIDENCY, not citizenship. Basically, if you have been in Canada for more than 183 days (counting the hours - one hour is only one hour, not one day as in the States), you are taxable on your world income, no matter where it is located and under whose name you have your assets stashed away. That is why Howard Hughes left Canada when he did back in the 70's. If he had stayed in Canada (even as a visitor) two more days, he would have been taxable on his world wide holdings.

Note that in March, 1999 Denise Rondpre of Revenue Canada Customs Excise and Income Tax issued a policy letter to Foreign Air Crew flying for Canadian Airlines and Air Canada. This directive stated that it was Revenue Canada's opinion that one hour in Canada constituted a full day in spite of the fact that the courts have ruled against them and the law, itself, has not changed. I do not think that this is enforceable, but you must be aware of it.

Here's the link to the website, which contains more light reading sure to make anyone's head spin...

http://www.centa.com/articles/U.S.Cdntaxation.htm

WJ700 · Post by **WJ700** » Sat May 19, 2007 9:22 pm

The AC jumpseat guy is a resident of Daytona, FL. He's a great guy and would be a good one to talk to.

flyusmidwest · Post by **flyusmidwest** » Thu Jun 14, 2007 9:24 am

Caly wrote:Just curious if anyone knows of any AC pilots that live in the U.S, or know if this would even be possible, and commute up to Canada? Assuming dual citienship, greencard, or whatever.

flyusmidwest · Post by **flyusmidwest** » Thu Jun 14, 2007 9:31 am

I live know of several AC pilots living in Florida and Minneapolis.
I believe tax savings are much greater then 2% especially if you live in Florida where there is no state income tax.

As far as a green card this gives you permanent residence without it you are limited to 180 days a year in the US.I am not a lawyer but eventually US Cutoms would stop you from entering if they think you spend too much time in the States.And without a green card you would not be able to get a state drivers license things have changed since 911.
Hope this helps!!!

tofo · Post by **tofo** » Thu Jun 14, 2007 5:45 pm

the intrest on the mortgage is tax deductable in the states but you pay capital gains when you sell. where in canada assuming you live in the house for a specified period (1 year I belive) no capital gains tax. and the way property values are going your much further ahead in canada, if that's your only consideration

Ralliart · Post by **Ralliart** » Sat Dec 08, 2007 8:47 pm

For those who work at AC but legally reside in the US, how does the medical coverage work?

Would the AC medical benefits cover you and your spouse when living in the US assuming your spouse didn't have any medical coverage through their own employer?

hawker driver · Post by **hawker driver** » Sat Dec 15, 2007 7:24 pm

Wow, I am the complete opposite. I just moved back to Canada after 8 years in the US and still commute back to work over there.

I did not want my little one to grow up and go to school in the US. Plus put up with all of the BS that has been happening there since 9/11.
I will gladly pay the extra taxes for being able to live in Canada.

You biggest problem will probably be Medical coverage in the US. If you are sick or get into a car accident your bills could bankrupt you. Plus getting a driver's license in the state where you are planning on living could be a problem with all the xenophobia.

wxnut · Post by **wxnut** » Sun Dec 16, 2007 2:52 am

I know of an embraer first officer who lives in the states... he manages to do ok

Any AC pilots live in the U.S.?

Any AC pilots live in the U.S.?

Re: Any AC pilots live in the U.S.?

Re: Any AC pilots live in the U.S.?