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Real Mountie
13 hrs · Waterloo, Canada

Canadian skippers face challenges when cruising in United States inland waters. The IRS (the American Internal Revenue Service) wants to know about you, and wants you to show them that you have a closer connection to Canada than to the US.
If you do not file the required 8840 forms, then the IRS has the right to request you to file an actual US tax return. You don’t want that because you are subject to US tax on your worldwide earnings. First, you have to do a three-year calculation that determines whether or not you have a “substantial presence” in the US, based on the IRS rules.
What most Canadians don’t realize is that when they visit the US, they are travelling on a visitor’s visa, and they are there by permission of the US government. If a person stays there 121 days and does that for three years in a row, then that person has established a “substantial presence” in the US, and should therefore be taxed as an American, unless that person has a “closer connection” to another country, like Canada. The IRS and Border Service are becoming more closely connected themselves, so it is best to comply voluntarily, before they ask...
There is an Action plan named “Beyond the Border” is jointly implemented by the Customs Agency and Border Protection, Citizenship and Immigration Canada and the Agency of Canada Border Services Agency (CBSA) so integrate data from all the people who cross the border entry, North or South. Until now, U.S. border agents could you check in the United States, but they had little unified way of knowing when you are returned to the country. Therefore, a pilot system tracking has been tested at the busiest border crossing to see if it was possible to obtain reliable data.
As of June 30, 2014, the input / output program will be implemented in full. U.S. border agents and Canadian Border agents to share information on Canadians traveling south. They exchange data and create a profile entry / exit exacts your travels.
People with such a “closer connection” are provided an exemption from filing a full US tax return if they file Form 8840 on time. However, failure to file can result in denial of the exemption, and the resulting requirement to file a US return.
Vessels more than 30 feet (9.144 meters) must display a DECAL from Decal and Transponder Online procurement (25$ USD) each year.
CBP has implemented the Small Vessel Reporting System (SVRS). It is a free, easy-to-use, voluntary program that we enrolled for online. We had to meet a CBP officer with our boat registration and passport. We obtained our (BR Number) Boater Registration Number.
Cruising licenses are compulsery as they exempt Canadian pleasure boats from having to undergo formal entry and clearance procedures such as filing manifests and obtaining permits to proceed as well as from the payment of tonnage tax and entry and clearance fees **at all** but the first port of entry.
Before leaving Lake Champlain, NY. we had obtained our cruising license from Rouses Point U.S. Customs and Border Protection (CBP) Port of entry.
SVRS enabled us to report quickly and easily to CBP.
Important Note: When our Canadian vessel left Lake Champlain at Whitehall, the Master shall have a Cruising license and shall report to a Call 1 (800) 432-1216 or 1 (800) 451-0393 its location when anchored or at a different port of call.
We reported 37 times during cruised in Cape Cod during summer 2012. We got used to it and the morning after the 37th reported call, we were boarded just before Albany, NY on our return trip. Everything was OK and they were courteous and very professional.
Please note the following amendment received from Dennis McMurtry on 7th April 2009: QUOTE
The requirement for reporting movement only applies to vessels moving from one customs reqion to another, i.e.from Ft Lauderdale to Miami, Miami to Ft Myers or Key WEST ETC.
Verified by official who issued annual cruising permit from Ft Lauderdale office.
Original Report
Published: February 4, 2008
The situation described below will be a real burden for all foreign flagged vessels cruising in USA waters. Our thanks to Captain Brenda Matzner for researching this developing situation, and allowing me to paraphrase our telephone conversastion!
The long and short of this is, that if you are from any foreign country, including Canada, and your vessel is flagged in that country,
YOU MUST NOTIFY US CUSTOMS - HOMELAND SECURITY EVEN IF YOU SIMPLY MOVE YOUR VESSEL FROM ONE MARINA TO ANOTHER, IN THE SAME PORT OF CALL! Otherwise, you might just be slapped with a $5,000.00 fine!
Note that this requirement does NOT apply to US flagged vessels!
Today, I called Maria (954-761-2034) at the office of US Customs and Homeland Security in Port Everglades [Fort Lauderdale], and got a clarification of the requirements for foreign flagged vessels to announce their movement from one port or call, or one berth, to another. Recently, I had a buddie who was recently hit with this rule, and suffered a $5,000.00 fine in Jacksonville.
Even if a foreign flagged vessel, including those from Canada, have entered the USA legally, and cleared customs properly, THEY MUST NOTIFY US CUSTOMS - HOMELAND SECURITY if they move their vessel from one place to another. Officer Maria said that even if the vessel is moved just from Port Everglades to Miami, for example, or even from the city of Fort Lauderdale berths on New River to Bahia Mar, the boat owners MUST notify US Customs - Homeland Security IMMEDIATELY, OR BE SUBJECT TO A $5,000.00 FINE!
Note: There appears to be some confusion over whether this rule does apply if the vessel has a cruising licence. It is advisable to obtain a written copy of the procedure to be followed when initially clearing in or being issued with a cruising licence. See Documents for the list of countries whose boats are eligible for a cruising permit.
Source: www dot noonsite dot com/Members/val/R2009-02-28-2 UNQUOTE
So this is the reality in cruising for a Canadian vessel and crew.
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3 people like this.

Jim Laverdiere Thanks for that.
13 hrs · Like · 1

Colin Mombourquette Wow
12 hrs · Like

Nathan Van Meter WOW, What a PITA.
Not that I plan on cruising in Canadian waters, but what are y 'all 's rules up there for the same scenario?
12 hrs · Like

Steve Thomas But you are cruising in a foreign country. Correct? In Belize we must follow the rules here. Same with anywhere in the world.
12 hrs · Edited · Like · 2

Joel Wilkins Would be so much easier if we (the US) adopted a permit similar to Bahamas. Pay your 300 for 6 months cruising.
12 hrs · Like · 1

Bill Jelinek I 've cruised the North Channel and Georgian Bay area for 9 weeks each of the last 2 years. Have more trouble getting back to US than getting into Canada. Canadians realize that we spend a lot of money in small back country cities and the appreciate it that we do. We let drunken illegal aliens across the southern border, but screw the Canadians that come here and spend their hard earned money.
12 hrs · Like

Patrick Battaglia Think you are over simplifying and spouting lies. See a lot of Canadians at the RV Parks through out the US.
12 hrs · Like

Rik Hall Patrick - if you are referring to the OP, it is 100% correct. We are Canadian and will have to limit our time in the USA now, because of the IT abilities to track exactly the number of days here. And we do spend a lot of dollars here, both in the summer cruising, and in Jan-Mar in Florida renting. Will be much less now.
11 hrs · Like · 2

Bill Jelinek No lies Patrick Battaglia, and no over simplification. Just the truth.
11 hrs · Like · 1

Nathan Van Meter Just know Rik, it not US!! It 's the U.S. Govt. Most of us citizens & Floridians in particular like & appreciate our Canucks to our north.
11 hrs · Like · 2

Judy Cook Let 's get some valid perspective on this http://www.americanlaw.com/ustxtmp2.html
OVERVIEW OF TAX CONSIDERATIONS FOR CANADIANS IN THE UNITED STATES
Due to its proximity to the United States, Canada is the United States ' largest trading partner. In addition, Canada is a signatory to the North American Free Trade Agreement ("NAFTA") with the United States and Mexico. As a result of these very close economic and cultural ties between Canada and th…
AMERICANLAW.COM
11 hrs · Like · 1

Judy Cook It seems to me that if a Canadian is here to make money, he pays taxes. If he is here on vacation, he does not.
11 hrs · Like · 1

Rik Hall Nathan - we are currently in Odessa and have met so many really really nice people. And - the law has been on the books for probably 40 years or more - it is just that now they have the technology to enforce it.
11 hrs · Like · 1

Joel Wilkins Well Nathan Van Meter, you may be stretching that a bit. As a FL resident I like Canadiens just fine, but wish they 'd go home when done soaking up the sun instead of becoming annual snowbirds.
11 hrs · Like

Rik Hall Three months Joel - just until some of that white stuff melts! We have a fantastic boating season, from June to October - lol
10 hrs · Edited · Like

Nathan Van Meter I 'm good with em. As are my friends, so I guess I 'm speaking for my circle as it were.
10 hrs · Like

Rik Hall And the only American friends we have met that are nicer than the ones in Florida are our Maine boating friends - lol. That 's where we met Jeff and Karen
But then, we 've done 15 summers down in Maine and this is our first winter as Snow Birds.
9 hrs · Edited · Like · 1

Real Mountie http://www.snowbirds.org/update-beyond-the-border

http://www.snowbirds.org/tax-forms

UPDATE Beyond the Border - Canadian Snowbird Association
The Canadian Snowbird Association (CSA) has...
SNOWBIRDS.ORG
10 hrs · Like

Real Mountie https://help.cbp.gov/.../a_id/226/kw/Cruising%20licence

Pleasure Boats - Procedures for entering the U.S.
The master of a pleasure boat must report to U.S....
HELP.CBP.GOV
9 hrs · Like

Real Mountie https://help.cbp.gov/.../filename/Boating+requirements.pdf
9 hrs · Like

Ben Jansen Where is info on requirement to report movement within US waters, have not been able to find government site stating this?
9 hrs · Like · 1

Real Mountie I have only the experience from coast wise reporting. I met with Officer Waterburry, US Customs and Border Patrol Check-In Docks, he was the resource person from SVRS, when he issued the cruising licence at Bridge Road Rouses Point, NY 12979 , when he...See More
5 hrs · Edited · Like

Michael Levy More of us may just go on down to the Bahamas for the whole winter... of course there is always Cuba!
7 hrs · Like · 1

Kathy Haslam This may be a good time for me to ask: When we depart for the Great American Loop in 2 years we will be outside of Canada for more than 121 days for the duration of the trip. We have been told that there is a 'one off ' waiver from the Canadian Govn 't that we need to file. Anyone have any information on this?
6 hrs · Like

Real Mountie
Foreign Yachts
The captain must report the arrival of the yacht to Customs immediately and make formal entry within 24 hours. On arrival everyone must remain on board, except for the captain going ashore to report the arrival of the yacht. Documents needed include registration papers, a declaration of both ship 's stores and crew 's possessions, last port clearance, and a crew list. Clearance must be completed with Customs, Immigration, Health and Agriculture. Sometimes the Customs officer performs some or all of these other duties. On departure from the USA, yachts must clear out with Customs.

Foreign-flagged yachts (including Canadian ones, even if they are in possession of a cruising license), are required to notify Customs (Homeland Security) when moving from one customs region to another, i.e.from Ft Lauderdale to Miami. There are fines for vessels who do not comply. See the Noonsite/USA reporting article for more information. Note: There appears to be some confusion over whether this rule does apply if the vessel has a cruising licence. It is advisable to obtain a written copy of the procedure to be followed when initially clearing in or being issued with a cruising licence. See Noonsite/USA/Documents for the list of countries whose boats are eligible for a cruising permit.

One thing to be aware of, is that the various states often interpret these federal regulations differently, or apply local rules to suit a local situation. If possible, contact the officials at your chosen Port of Entry in advance to check requirements.

It is recommended to keep records of your checking-in activities, such as name and serial number of any officials you check in with, email receipts of notification, as well ensuring that the yacht 's details and movement have in fact been entered onto the automated system.

See noonsite 's Documents page for more requirements for foreign yachts. Source: http://www.noonsite.com/Countries/USA/?rc=Formalities

Vice Commodore, OCC