Requirements to be deemed non-resident of Canada

[Anonymous23]

Wife & I both have dual US & Canada citizenships. We've been US residents for years. New job opportunity coming up with 50% US 50% Canada.
Q1) If wife resides in Canada can I be deemed non-resident of Canada if I negotiate with employer to be on US payroll, keep US drivers license and health insurance and spend 183+ days / year in the US?
Q2) If yes to Q1 could my residential address in the US be at a hotel or do I need to rent / own a "traditional" home / condo / apartment in the US for CRA to consider me a US resident and a deemed non-resident of Canada?
Reason for the questions is to know if it's worth negotiating with potential new employer to be on US payroll instead of Cdn payroll. If also makes a difference on whether I can accept job offer or not. Thank you for any guidance.

[nelsona]

To be a deemed non-resident, you have to have sufficient ties in canda that CRA would consider you resident, BUT have MORE ties in US.

You would at least need a HOME in US, non-temporary. So corporate housing, hotel, etc would not count. You would ALSO need to not visit Canada, but rather have your spouse vist you. Other wsiwe it is clear that you center of vital intersts would remain in Canada -- ie you are only working in US, but your life is in Canada.Only then would the conditions you outline in Q1 work.

183+ days just doesn't cut it. more like 283 days.

Be aware that becoming deemed non-resident triggers ALL the requirements of a non-resident: exit tax, final return, loss of principal residene exemption, etc. As well as all the problematic filing that US citizens living in Canada are so upset aboiut.

[Anonymous23]

Thank you very much for your post. Considering that today I am a US resident, can you please elaborate as to why spending more than 283 days in the US would be required instead of 183+ days? If job requires to work 1 week in Canada and 1 week in the US I couldn't spend 283 days in the US even though I could spend over 183 days / year in US.
Is it the spouse presence in Canada that would trigger this 283 day rule? Even if we have no child taking advantage of the Cdn education system and if we are on a private US health plan and not using the free Cdn healthcare system?
If that's truly the case I guess it's a no brainer I can't take that job as tax rates are 20 points higher in the Cdn province vs. the US state where that position would be.
Thank you so much.

[nelsona]

You are asking about deemed non-resident status (DNR). Thtat means deemed by canada's treaty with US.

DNR status means that you are considered resident of both countries. So, OBVIOUSLY, you would need to meet the definition of US tax residency (which is the SPT) jusat as you meet the Cdn definition, house and spouse in canada. Otherwise you can't even join the discussion about DNR.

But for you to be a deemed non-resident of canada, you need to meet the TREATY definition of US resident RATHER than a CDN resident.

You do this by what I outlined above. Going back home after work is exactly that in the eyes of the treaty: you view canada as home, and are merely working in US. that is why the visits to canada need to be limited if you want to achieve DNR status.

As to taking the job, there are many who live in canada and work in US. The taxrate is not the only issue. Of course you will pay at least the same tax that your US collegue will be paying and probably more, but will you be making more than if you took a job in canada -- likely at ta lower wage? Can your wife instead move with you and work in US? Are you willing to take on the burden of foreign reporting of all your Cdn assets just to save a bit of Cdn taxes? can the firm hire you as a contractor, paying you more (since the US fringe benefits are meaningless to you)?