My thinking is flawed, straighten me out

[CantBelieveItsNotButter]

Hi! I'm new... In my mind I have it "all figured out", but it's too good to be true so I know it's wrong... Here's what I'm thinking...

Married - Near 30 - 2 kids under 10

From - Minnesota

Live - Dallas TX

In two years my wife will be a registered nurse and could (theoretically) find a job anywhere. My career is artistic and I bring in 4000 US/month as a freelancer. I currently have a "real" job as well totally around 100,000/year. My wife doesn't work at the moment, she's finishing school.

So... In 2-3 years we'll be moving..

Canada!?!?!?!

Here's why (something's gotta be wrong here).

What if I did this:

Move around 30 minutes north of the US border.

Setup a busniess, PO Box and bank account in the US.

My income is in US funds, from US radio stations.

In Canada, we'd add quite a bit to each dollar I earn. at least .60/dollar?

So, let's say we move to dirt cheap Thunder Bay (I know it's dying, but there will always be a need for nurses and I can literally live anywhere). TB is also very close to my wife's family.

My 200,000 US home is only 80,000 in TB.

My 4000/month is greatly increased in Canada.

I put payment from my clients directly into the US account

Pay US income tax

Transfer the money online to my Canadian account.

I figger I come out at least 24,000/year ahead.

With my US income wont' I get a giant raise just for moving?

I know taxes are high... We'd buy big ticket items in the states... Would paying duty still put me ahead of 15% sales tax?

Taxes, cost of living, etc will be much higher. But if I am correct about at least a 24,000/raise just for waking up in Canada - would Taxes negate that? Housing looks so cheap in Thunder Bay.

Again, too good to be true. Straighten me out.

Thanks!

New guy

 

[PMM]

Hi

Hi! I'm new... In my mind I have it "all figured out", but it's too good to be true so I know it's wrong... Here's what I'm thinking...

Married - Near 30 - 2 kids under 10

From - Minnesota

Live - Dallas TX

In two years my wife will be a registered nurse and could (theoretically) find a job anywhere. My career is artistic and I bring in 4000 US/month as a freelancer. I currently have a "real" job as well totally around 100,000/year. My wife doesn't work at the moment, she's finishing school.

So... In 2-3 years we'll be moving..

Canada!?!?!?!

Here's why (something's gotta be wrong here).

What if I did this:

Move around 30 minutes north of the US border.

Setup a busniess, PO Box and bank account in the US.

My income is in US funds, from US radio stations.

In Canada, we'd add quite a bit to each dollar I earn. at least .60/dollar?

So, let's say we move to dirt cheap Thunder Bay (I know it's dying, but there will always be a need for nurses and I can literally live anywhere). TB is also very close to my wife's family.

My 200,000 US home is only 80,000 in TB.

My 4000/month is greatly increased in Canada.

I put payment from my clients directly into the US account

Pay US income tax

Transfer the money online to my Canadian account.

I figger I come out at least 24,000/year ahead.

With my US income wont' I get a giant raise just for moving?

I know taxes are high... We'd buy big ticket items in the states... Would paying duty still put me ahead of 15% sales tax?

Taxes, cost of living, etc will be much higher. But if I am correct about at least a 24,000/raise just for waking up in Canada - would Taxes negate that? Housing looks so cheap in Thunder Bay.

Again, too good to be true. Straighten me out.

Thanks!

New guy

1. Canadian Dollar today is .87 US so closer to 13% difference than 60%.
2. You pay taxes on your worldwide income in Canada, so first you pay your US income tax, get a credit for it then pay your Canadian taxes.
3. Importing goods from the US, you pay duty and then you pay GST and taxes on the import. No further ahead.
4. By the way, you don't just move. suggest you have a look a www.cic.gc.ca to see how to emigrate.
5. Also your wife after graduation, would still have to qualify in Ontario as a nurse see:http://www.cno.org/international_en/intro/ She would also require 1 year of working experience as a nurse to qualify as an immgrant. Processing in Buffalo for Skilled workers these days is running at 19-43 months and is getting longer.

PMM

 

[CantBelieveItsNotButter]

Outstanding! Thanks for clearing that up... Yes, I know it's "emigrate" not just move... My biggest question was what I perceived to be huge financial gains. You say "no way."

I say, "THANK YOU!"

So, Thank you!

 

[Andrei]

In addition to what PMM wrote:

13% difference between US and Canadian dollar is just a diffrence in exchange rate.

It does not necessarily mean that your US dollars will be worth more in Canada, only the amount will be larger when converted to Canadian dollars.

You can move to a dirt-cheap place in US and get much better value for your money: cheaper real estate, food, etc.

Andrei