Advice. Double Constructive Retention

[Fredflintstone]

I thought I would do a post that sways from current virus issues.

I need your advice.

Apparently, a colleague of mine who specializes in US Immigration and Citizenship law says I qualify for US Citizenship through something called Double Constructive Retention. Just so this post isn’t lengthy, the concept behind Double Constructive Retention is located here:

Can I Claim United States Citizenship Through My Grandparent?

Under The Doctrine Of Constructive Retention, It May Be Possible For An Immigrant Grandchild To Become A U.S. Citizen Through A Grandparent.

www.bataraimmigrationlaw.com

In my case, my dads parents were both US citizens. My grandfather was born in Nebraska and my grandmother was born in North Dakota. They immigrated to Canada. My dad was born in Canada but could have applied for US citizenship but never knew that. He has since passed away.

On my moms side, my grandparents were also US citizens. Both of them were born in Michigan. They moved to Ontario to support the auto industry. Mom never knew she qualifies for US citizenship until now. Mom was born in Canada.

Hence, because I didn’t know I qualify until my colleague pointed it out, I qualify as well.

I love the people and the country but am a Canadian boy at heart. I can go to the US (when borders are open ) for up to six months at a time.

I understand that I may be the last line to qualify so I would do it to gain dual citizenship so my kids would have that option. If I don’t, my kids would PROBABLY not qualify.

Also, tax issues may apply in the US (still researching that) as the US is the only country that applies worldwide income on their citizens.

I might spend winters in the US but would always return home in Canada.

So, do you think I should go ahead and get dual citizenship or just remain with a Canadian Citizenship?

If so, why do you think I should get my colleague to complete the application process?


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[geekette]

Personally, if I could dualie, I would. Good point on the income aspect, tho. That would be the hitch, but might be on all types of income. I'm sure their hand is out for earned income (since for most of us that matters for Social Security) but maybe not investment income. Worth looking into.

 

[TravelTime]

It sounds like this is complicated. The website says it is rare to get approval. Will it be costly to attempt to get approval?

 

[Fredflintstone]

Personally, if I could dualie, I would. Good point on the income aspect, tho. That would be the hitch, but might be on all types of income. I'm sure their hand is out for earned income (since for most of us that matters for Social Security) but maybe not investment income. Worth looking into.

Yes, I am researching the tax treaty between the US and Canada. I know dual citizens who have to disclose their incomes and bank accounts by US law even though they live, work and earn in Canada


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[Fredflintstone]

It sounds like this is complicated. The website says it is rare to get approval. Will it be costly to attempt to get approval?

Well, no because I am in Law and the friend of mine is a colleague and offered to do it for free. However, it can be expensive as it is complicated

He has all the documents and garnered advice from USCIS and they said I qualify especially since both my grandparents were US citizens and both mom and dad qualify.

Funny, this all started thru an innocent conversation about our ancestry over coffee.


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[Sandy VDH]

I am already a dual-y, hence my avatar.

I was considering if I could get an EU, as both of my parents were born in The Netherlands. I think I would have to give up one of my others ones though. Haven't even considered it at all.

 

[dioxide45]

If it won't cost you anything, I see no reason not to do it other than the fact you would always have to file a US tax return. It seems that at least one of your grandparents would have had to have lived in the US until the age of 21 in order to qualify. ALso consider, if the colleague isn't versed in this, it may not be as easy as it seems. It would seem you would want someone who has handled several of these cases before, unless you aren't concerned if you are denied.

 

[Fredflintstone]

If it won't cost you anything, I see no reason not to do it other than the fact you would always have to file a US tax return. It seems that at least one of your grandparents would have had to have lived in the US until the age of 21 in order to qualify. ALso consider, if the colleague isn't versed in this, it may not be as easy as it seems. It would seem you would want someone who has handled several of these cases before, unless you aren't concerned if you are denied.

Good advice. My friend is a specialist in US Citizenship and Immigration law and has an amazing track record. I deal in International Trade Law and Contracts and frankly I wouldn’t attempt it myself as I know very little on Immigration Law.

We both know it’s complicated. Since both my mom and dad naturally would receive derivative US citizenship (as both their parents were US citizens through birth), approval is quite common. In theory, my mom and dad were US citizens through their parents. They never enquired or applied for US citizenship as they didn’t know that.

Yes, on dads side, my grandfather was in the US until 26. My grandmother 25.

On my moms side, my grandfather was 23 and grandmother was 21.

We know this through the Census records.


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[Panina]

I thought I would do a post that sways from current virus issues.

I need your advice.

Apparently, a colleague of mine who specializes in US Immigration and Citizenship law says I qualify for US Citizenship through something called Double Constructive Retention. Just so this post isn’t lengthy, the concept behind Double Constructive Retention is located here:

Can I Claim United States Citizenship Through My Grandparent?

Under The Doctrine Of Constructive Retention, It May Be Possible For An Immigrant Grandchild To Become A U.S. Citizen Through A Grandparent.

www.bataraimmigrationlaw.com

In my case, my dads parents were both US citizens. My grandfather was born in Nebraska and my grandmother was born in North Dakota. They immigrated to Canada. My dad was born in Canada but could have applied for US citizenship but never knew that. He has since passed away.

On my moms side, my grandparents were also US citizens. Both of them were born in Michigan. They moved to Ontario to support the auto industry. Mom never knew she qualifies for US citizenship until now. Mom was born in Canada.

Hence, because I didn’t know I qualify until my colleague pointed it out, I qualify as well.

I love the people and the country but am a Canadian boy at heart. I can go to the US (when borders are open ) for up to six months at a time.

I understand that I may be the last line to qualify so I would do it to gain dual citizenship so my kids would have that option. If I don’t, my kids would PROBABLY not qualify.

Also, tax issues may apply in the US (still researching that) as the US is the only country that applies worldwide income on their citizens.

I might spend winters in the US but would always return home in Canada.

So, do you think I should go ahead and get dual citizenship or just remain with a Canadian Citizenship?

If so, why do you think I should get my colleague to complete the application process?


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Definitely. You never know what life brings and having dual citizenship in two great counties can’t hurt.

 

[Fredflintstone]

Definitely. You never know what life brings and having dual citizenship in two great counties can’t hurt.

Yes, my thinking as well EXCEPT for the tax question. I am pretty sure the Canada US tax treaty will solve this concern. In which case, I would get my friend to proceed.

I just can’t see Uncle Sam and Rev Can double taxing me.


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[slip]

I wouldn’t bother. Seems like more of a pain than it’s worth.

 

[dioxide45]

Yes, my thinking as well EXCEPT for the tax question. I am pretty sure the Canada US tax treaty will solve this concern. In which case, I would get my friend to proceed.

I just can’t see Uncle Sam and Rev Can double taxing me.


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Since the tax rate in Canada is higher, you are likely to pay more taxes there which should wipe out any tax burden you would have to Uncle Sam.

 

[PrairieGirl]

I AM a dual US/Cdn citizen. I caution you to fully research and understand that it is NOT just the double income tax filings that you have to consider. Yes, there is a tax treaty so that you will get foreign tax credits and not be double taxed. But the rules are complex and you will need to be prepared to pay significant dollars to have your returns prepared. And depending where you live in Canada you may have trouble even finding a qualified tax preparer who wants to take you on. And there are other filings required by FINCEN (similar to FITRAC in Canada) and.there are serious fines if you neglect to file them. I am a US citizen by birth who has lived i Canada for over 30 years. It makes sense for me to also be a Canadian citizen now that I can be (when I moved here the US would not allow duals). You are a Canadian living on Canada. What advantage do you see if you have no plans to ever become a permanent US resident?

 

[Fredflintstone]

I AM a dual US/Cdn citizen. I caution you to fully research and understand that it is NOT just the double income tax filings that you have to consider. Yes, there is a tax treaty so that you will get foreign tax credits and not be double taxed. But the rules are complex and you will need to be prepared to pay significant dollars to have your returns prepared. And depending where you live in Canada you may have trouble even finding a qualified tax preparer who wants to take you on. And there are other filings required by FINCEN (similar to FITRAC in Canada) and.there are serious fines if you neglect to file them. I am a US citizen by birth who has lived i Canada for over 30 years. It makes sense for me to also be a Canadian citizen now that I can be (when I moved here the US would not allow duals). You are a Canadian living on Canada. What advantage do you see if you have no plans to ever become a permanent US resident?

Great info. Thanks.

No, I don’t plan to live in the US. I was purely thinking in terms of giving my kids the opportunity for dual if they want.

Yes, I have dual friends who tell me it’s not worth it if I don’t plan to live in the US. Actually, I personally know a few friends who renounced US citizenship because they saw dual as a hassle.


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[DaveNV]

You state the main reason you'd do it is so your kids could also do it. Have you asked them if they'd want to do it? If not, and you're happy now, I'd leave it as it is.

Dave

 

[Fredflintstone]

You state the main reason you'd do it is so your kids could also do it. Have you asked them if they'd want to do it? If not, and you're happy now, I'd leave it as it is.

Dave

Good point. My kids are indifferent. Kind of Meh moment. I suppose I just leave the option to them and if it’s Meh then just leave it.


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[bizaro86]

I definitely would not do this, especially as I recall you mentioned significant assets.

There is a tax treaty, but RRSP and TFSA accounts aren't tax free for US citizens, I dont believe, as just one example of the added complexity.

And (as you probably know) in Canada your death is a deemed disposition for capital gains tax purposes of all your assets. In contrast, in the US your heirs get a set up in taxable basis on your assets, but they have an inheritance tax. Trying to optimize for both systems is much more difficult than trying to optimize for one.

Unless there is some big advantage (one of your children wants to move to the US) I wouldn't do this. I have a couple of friends who are dual citizens, and their tax planning is more time consuming and expensive than mine in a significant way.

If you wouldn't spend more than 6 months in the US anyway I wouldn't do it.