From every province, thousands of retired Canadians have started their annual migration to spend winter down south. A few years ago the attraction to go south was the poor US economy and the declining US dollar. Almost everything in the US is a lot cheaper than Canada. From rent to groceries, the cost of living in the US is low. Plus, the US real estate with spacious yards, a swimming pool and two car garages is only a third of the cost of what it would be in Canada. Finally the biggest attraction of going south is the weather-which is simply beautiful.
However, things have changed over the past few years for Canadians. The first thing is that the Canadian dollar has taken a downward spiral over the past few years. With a Canadian dollar worth only US 75 cents, everything is going to be costing a lot more. And with the ailing Canadian economy, this can amount to a lot of money, especially when buying something big in the USA like a car or a home. Most snowbirds across the nation will need to closely watch their spending this year.
An estimated 500,000 Canadians spend a significant time in the US but with the decline of the Lonnie, most will cut the duration of their visit. With the weak Canadian dollar, buying US property will be out of the question for many retirees and renting may be a better option. For those retires with US property who are planning a home extension or a major repair, paying an extra 25 cents for every canadian dollar may now lead delays in any planned home improvements.
The other thing that the snowbirds need to be aware off is that the Canadian government has now installed a border exit tracking system to avoid paying millions of dollars in social benefits which are currently being given to Canadians who should not be receiving any benefits due to their prolonged absence from Canada. With the Canadian economy stalling, the government is now trying to save money by going after the retirees who stay out the country for long periods. The Canadian government has sent up a security pact with the US which allows each other to track entry and exit information on each traveler. In the past the entry/exit of Canadians was never well documented but things are changing. In addition to collecting information on Canadians leaving by air, Canadian officials are also going to be tracking Canadians who cross and enter at the border by car.
Finally all retired Canadians need to be aware of the new American taxes that the US internal Revenue Service has in place this year. Anyone spending more time than allowed in the US will be facing a whole host of problems. The rule is that Canadians need to keep under the 182 day limit, otherwise they risk creating a US claim on their world wide income, getting barred from the US for 5 years and even losing their highly prized free healthcare.
Best advice for all retired Canadians who plan to go south and stay for long periods or invest is that they need to be know the US laws before they embarking on their journey. If all this sounds to complicated, speak to an immigration lawyer.
Dr. David Tal has more than twenty years of clinical experience. He strongly believes that medical treatment can improve the life of Alzheimer's and memory loss patients. His participation at the Age Matters Clinic allows him to understand that having an Alzheimer's patient influences the whole family.

