My question is: Applicable to both US and Canada

 QUESTION: Hi,
     I'm a Canadian living and working in the US since Nov/01 on a TN Visa.  
I was wondering if there were a way to buy and import a car from Canada into 
the US without paying any duty or taxes.  >From my research, it seems I can 
import a car for 1 year, upon which time I have to pay a 2.5% importation 
tax (for Japanese cars i.e. Lexus) when my TN Visa runs out.  I do plan on 
renewing my TN Visa in 1 year, but I still think I have to pay the tax.

     When I first moved down I was allowed to bring in a car without paying 
any fee if I could prove that I owned the car for at least 6 months before I 
moved.  Am I still within an allowable time to bring in a new car and 
consider it as a moving item?

     Also, while prying with a US Customs agent I found out that if I apply 
for a Green Card I may not have to pay any fees.  Is this true?

     Any help would be greatly appreciated.  Thanks,                                          

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1.    YOU ANSWERED YOUR OWN QUESTION. If you have not owned it for six months before you move, it cannot be considered a tax free part of the move.

2.    It is still cheaper to buy a majority of cars in Canada and take them to the USA.  However, if the Canadian dealer even thinks that you are going to take the car south, the dealer is NOT allowed to sell it to you.

If the dealer does sell you a new car while knowing you are taking it to the US, the dealer can lose their franchise to sell that make of car.

The most dangerous statement you made was about the Green Card.

You are NOT allowed to have a TN visa if you are intending to stay in the USA.  Therefore, talking to a US INS or Customs officer at the border about getting a green card usually results in a TN not being issued.  In several cases I am aware of, the INS officer has removed the TN visa from the visa holder when the INS officer is informed that there is a green card application underway.

It is theoretically possible to be doing both if you are renewing your TN through the mail, but do not talk about it in person AT the border.

You also have a "complicated" income tax problem as a departing Canadian and a Dual Status taxpayer in the US.  You should send us the tax returns to be done.  Make sure that the same person does all the return.  DO NOT get someone to do Canada and someone to do the US.

see more at www.centa.com - Note the series of tax courses including one specifically for Canadians working in the US and Americans in Canada and another for Canadians leaving Canada for other countries like Libya or Dubai or Indonesia.