Canada residency for tax purposes

bluebean · Post by **bluebean** » Mon Jul 25, 2011 12:10 am

I just got my green card and would like to move permanently to the USA. I am selling my home but still have the following assets:

- RRSP
- RESP
- Bank Accounts
- Life insurance

I was told as long as you sever all ties (Residence, driver license, OHIP card, credit cards, membership cards, etc ...) and change accounts to be non resident accounts I should be considered as a non resident for Canada taxes purposes. Is this correct?

Once the Tax home is moved to the US do I owe anything because I sold my house to the US?

Thanks for helping me clarify this.

Al

nelsona · Post by **nelsona** » Mon Jul 25, 2011 8:36 am

You do not really have to do anything to become US tax resident other than move and set up life in US. Your OHIP and DL won't be valifd anymore. You can keep all accounts, but should advise bank, etc that you live in US. You may need tomove your RRSP/RESP to a brokerage that will accept US residents.

You will have a departure return to file with Canada.

I'm not sure what "sold my house to the US" means. If you sell your home in canada either before or just after you leave canada, you will not owe any tax in either US or Canada.

bluebean · Post by **bluebean** » Mon Jul 25, 2011 9:59 am

Thanks for the info. What is a departure return? Last return filed in Canada?

Thanks

nelsona · Post by **nelsona** » Mon Jul 25, 2011 11:00 am

In the year you leave canada, you file a exit return (Emigrant). CRA has a booklet that describes this.