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jedinite

Commuting to Canada for work on CR-1

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Filed: IR-1/CR-1 Visa Country: Canada
Timeline

So I think I posted this before somewhere but I can't seem to find my post anymore, and since there's a good discussion on what to do if you're on a K1, I wanted to pose the question about traveling to and from the US when you first get your CR-1.

My situation specifically is that I am a independent consultant working in Canada at the moment. That means I have my own corporation and I get paid directly from my client to my company. I have yet to receive my CR-1 but since I filed my DS-230 I'm just waiting for my interview to be arranged and that shouldn't take long (I hope).

1) Can I continue working in Canada for a few months while I'm on a CR-1?

I will probably travel back to the US every few weeks, maybe even every weekend. I'm not working/living near a border city so I won't be able to afford to travel back and forth on a daily or semi-weekly schedule. I don't plan on working on Canada indefinitely, only for the first few months, perhaps 1/2 year after getting my CR-1. Basically, I want to continue working until I find a suitable job in the US before quitting my current job in Canada, however I also don't want to be shooting myself in the foot by working in Canada.

2) Will I have to close my Canadian corporation once I finally move to the US permanently?

I may want to keep my Canadian corporation operational for cross-border business, as I will plan to incorporate in the US also.

3) Since, I will probably obtain my CR-1 prior to the end of the year, how will my taxes be affected?

Should I abstain from taking residency until Jan 1st so that my earnings in Canada will only be taxed in Canada? Or will I have to file taxes in the US regardless because my wife is in the US? A bit of background, I was on a TN-1 visa prior to me leaving the country in 2007, but for all of 2008 I have not worked in the US, only Canada, but I already have a SIN in the US and have filed taxes there for 5 years (2002-2007)

4) When it comes time to leaving my Canadian job, and doing away with commuting. What's the best method of taking having my corporation pay me?

I know I will have to consider any earnings outside of the US as World income. And currently I am taking a mix of dividend payments and minimal salary to avoid tax as much as possible. Corporate tax rate is around 16% is what my accountant tells me vs my personal tax rate which would be like 35%, and by taking dividend payments (up to 30-35K) I can avoid paying personal tax because I have paid corporate tax on the income, but I would like to know how I will have to record it for the IRS.

Thanks for the advice.

History

12/2000 Met Online

02/14/2001 Started dating

04/20/2001 Met in person

03/2002 Moved in together in the US

2002 - 2007 working in US on TN-1 Visa

05/2005 Registered as Common-law

06/2005 Proposed and Engaged

08/30/2007 - Married

I-130 (156 Days)

02/20/2008 I-130 Filed

03/10/2008 NOA1 - CSC confirmation sent

03/12/2008 date on online tracking - Touched

08/11/2008 - NOA2 - I-130 APPROVED!!! USCIS page updated. (156 Days)

NVC

08/14/2008 - NVC received my application and has assigned me a case number. Waiting for Beneficiary letter.

08/15/2008 - e-mailed the NVC for choice of Agent DS-3032, not sure if I was suppose to do this before actually getting paperwork sent to me.

08/25/2008 - AOS Fee Bill and DS-3032 Generated

08/30/2008 - Letter Recieved

09/02/2008 - AOS Fee Bill Paid and DS-3032 Choice of Agent e-mail sent

09/03/2008 - AOS Fee Bill Recorded as Paid

09/10/2008 - NVC sends DS-3203 Receipt Confirmation

09/10/2008 - IV Fee Bill Available and Paid

09/11/2008 - IV Fee Bill Processed - PAID, Coversheet Generated

09/11/2008 - Following directions on James' Shortcuts for creating DS-230 Package

09/18/2008 - Sent in I-864 and DS-230 (FedEx Overnight)

09/29/2008 - NVC Case Completed!

09/??/???? - Packet never received (sent in with James' Shortcuts as soon as bill was paid)

12/03/2008 - Interview - APPROVED!

12/04/2008 - Visa Received

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Filed: AOS (apr) Country: Philippines
Timeline
So I think I posted this before somewhere but I can't seem to find my post anymore, and since there's a good discussion on what to do if you're on a K1, I wanted to pose the question about traveling to and from the US when you first get your CR-1.

My situation specifically is that I am a independent consultant working in Canada at the moment. That means I have my own corporation and I get paid directly from my client to my company. I have yet to receive my CR-1 but since I filed my DS-230 I'm just waiting for my interview to be arranged and that shouldn't take long (I hope).

1) Can I continue working in Canada for a few months while I'm on a CR-1?

I will probably travel back to the US every few weeks, maybe even every weekend. I'm not working/living near a border city so I won't be able to afford to travel back and forth on a daily or semi-weekly schedule. I don't plan on working on Canada indefinitely, only for the first few months, perhaps 1/2 year after getting my CR-1. Basically, I want to continue working until I find a suitable job in the US before quitting my current job in Canada, however I also don't want to be shooting myself in the foot by working in Canada.

2) Will I have to close my Canadian corporation once I finally move to the US permanently?

I may want to keep my Canadian corporation operational for cross-border business, as I will plan to incorporate in the US also.

3) Since, I will probably obtain my CR-1 prior to the end of the year, how will my taxes be affected?

Should I abstain from taking residency until Jan 1st so that my earnings in Canada will only be taxed in Canada? Or will I have to file taxes in the US regardless because my wife is in the US? A bit of background, I was on a TN-1 visa prior to me leaving the country in 2007, but for all of 2008 I have not worked in the US, only Canada, but I already have a SIN in the US and have filed taxes there for 5 years (2002-2007)

4) When it comes time to leaving my Canadian job, and doing away with commuting. What's the best method of taking having my corporation pay me?

I know I will have to consider any earnings outside of the US as World income. And currently I am taking a mix of dividend payments and minimal salary to avoid tax as much as possible. Corporate tax rate is around 16% is what my accountant tells me vs my personal tax rate which would be like 35%, and by taking dividend payments (up to 30-35K) I can avoid paying personal tax because I have paid corporate tax on the income, but I would like to know how I will have to record it for the IRS.

Thanks for the advice.

1) Sure

2) No

3) You will be considered a tax resident of the US for the entire year. Seek a good tax professional experienced in cross border taxation

4) Your Candian corporation does not have to show anything to the IRS... Seek a good tax professional experienced in cross border taxation to consider your personal side

YMMV

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Filed: IR-1/CR-1 Visa Country: Canada
Timeline

There are a few cr-1'ers that travel to canada daily to work, but then return to thier home (USA) One is even a cdn customs official!!

Canadians Visiting the USA while undergoing the visa process, my free advice:

1) Always tell the TRUTH. never lie to the POE officer

2) Be confident in ur replies

3) keep ur response short and to the point, don't tell ur life story!!

4) look the POE officer in the eye when speaking to them. They are looking for people lieing and have been trained to find them!

5) Pack light! No job resumes with you

6) Bring ties to Canada (letter from employer when ur expected back at work, lease, etc etc)

7) Always be polite, being rude isn't going to get ya anywhere, and could make things worse!!

8) Have a plan in case u do get denied (be polite) It wont harm ur visa application if ur denied,that is if ur polite and didn't lie! Refer to #1

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Filed: IR-1/CR-1 Visa Country: Canada
Timeline
There are a few cr-1'ers that travel to canada daily to work, but then return to thier home (USA) One is even a cdn customs official!!

That's cool, I know that it probably won't be an issue with daily commuters because they are going home every night, but I'll be a weekly or even bi-monthly commuter since I work in Calgary bit will be living in LA. Not feasible to daily commute. I just want to not be denied entry after getting my CR-1 and then have to deal with any legal complications.

Edited by jedinite

History

12/2000 Met Online

02/14/2001 Started dating

04/20/2001 Met in person

03/2002 Moved in together in the US

2002 - 2007 working in US on TN-1 Visa

05/2005 Registered as Common-law

06/2005 Proposed and Engaged

08/30/2007 - Married

I-130 (156 Days)

02/20/2008 I-130 Filed

03/10/2008 NOA1 - CSC confirmation sent

03/12/2008 date on online tracking - Touched

08/11/2008 - NOA2 - I-130 APPROVED!!! USCIS page updated. (156 Days)

NVC

08/14/2008 - NVC received my application and has assigned me a case number. Waiting for Beneficiary letter.

08/15/2008 - e-mailed the NVC for choice of Agent DS-3032, not sure if I was suppose to do this before actually getting paperwork sent to me.

08/25/2008 - AOS Fee Bill and DS-3032 Generated

08/30/2008 - Letter Recieved

09/02/2008 - AOS Fee Bill Paid and DS-3032 Choice of Agent e-mail sent

09/03/2008 - AOS Fee Bill Recorded as Paid

09/10/2008 - NVC sends DS-3203 Receipt Confirmation

09/10/2008 - IV Fee Bill Available and Paid

09/11/2008 - IV Fee Bill Processed - PAID, Coversheet Generated

09/11/2008 - Following directions on James' Shortcuts for creating DS-230 Package

09/18/2008 - Sent in I-864 and DS-230 (FedEx Overnight)

09/29/2008 - NVC Case Completed!

09/??/???? - Packet never received (sent in with James' Shortcuts as soon as bill was paid)

12/03/2008 - Interview - APPROVED!

12/04/2008 - Visa Received

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