Canadian with property in Canada working in US

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kidwatermelon
Posts: 1
Joined: Tue Sep 29, 2015 4:28 pm

Canadian with property in Canada working in US

Post by kidwatermelon »

Hi, I just moved to the US to work (5-year contract) and own a home in Canada, which I am planning to rent out. I can't figure out what my residency is, and what kind of tax I will have to pay on rental income. Would my house in Canada be considered a secondary residence, and thus vulnerable to 25% rental income taxation? To which country do I pay global taxation? Confused . . . Thanks!
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nelsona
Posts: 18353
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

There is no doubt that you will be a US tax resident and a CDn non-resident as sson as you move. Your Cdn rental income will be subject to section 216 tax in Canada (25% net withheld monthly), and then also reported in US, where you will get credit for the Cdn tax you pay.

Nothing to be confused about.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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