Leaving Canada to USA on TN -- what to do?

jh · Post by jh » Tue May 15, 2007 7:41 pm

Is there any harm in submitting NR73?
Someone told me that when she went to the USA, she didn't declare non-resident right away and she ended up paying double tax.
This was 1997.

nelsona · Post by **nelsona** » Tue May 15, 2007 9:11 pm

There is no advantage to filing it, and CRA can hang you on a wrongly ticked box.

You will be at the very least a traty non-resident, so no need to file NR73 unless asked.

jh · Post by jh » Mon May 21, 2007 4:59 pm

do I need to change my address associated with my Canadian credit cards and bank accounts once I've left Canada and moved to the USA?

will I be able to continue to use my credit cards and write cheques?

nelsona · Post by **nelsona** » Tue May 22, 2007 5:58 am

Of course.

jh · Post by jh » Mon May 28, 2007 8:13 am

Regarding my trading account.

If I move to the US in June this year, and I don't file my tax until April 2008, then does this mean on the day I leave Canada, I need to somehow find the closing price for each of my stocks for tax purpose?

What if one of my stock is in the process of being converted to another stock (corporate action) and this stock is halted for trading? In this case, there'll be no closing price on that day because there is no trading on that day.

nelsona · Post by **nelsona** » Mon May 28, 2007 8:32 am

Yes, you need to value your holdings. Obviously the value on the day you leave is simple if the stock market was open that day, but I'm quite sure you can stioll determine the value even if a stock is not being traded.

What if you move on Saturday or Sunday, or July 1st??!

Use the previous closing price. If you feel that somehow penalizes you, then use an mix of the last and next trading prices. I'm quite sure you can figure this out. Unless you are owning a HUGE chunk of a corporation, it won't make much difference, in which case you should probably get one of their accountants to do all your tax work anyways, since you own them.

bfwireless · Post by **bfwireless** » Tue Jul 10, 2007 11:01 am

I thought that with TN Visa you are not allow to move "permanently" to US. Am I missing something? If that is the case, then why worry much about moving things from Canada

nelsona · Post by **nelsona** » Tue Jul 10, 2007 11:08 am

You are indeed allowed to move entirely to US under TN. All that is required is that you 'promise' to leave when your TN is up.

And one is certainly allowed to make sufficient ties in US that one would be found to be a non-resident for tax purposes in Canada, and resident for tax purposes in US.

Thus the need to take the actions required to be declared non-resident for Cdn tax purposes.

bfwireless · Post by **bfwireless** » Tue Jul 10, 2007 11:27 am

Nelson,
I have been worked under TN for 3 years, my house, wife, stock, banking assets, stocks,RRSP... everything is in Canada, only bank acct is in MI. Do you think this is a bad plan? I can not move everything because.. my wife is in Canada

nelsona · Post by **nelsona** » Tue Jul 10, 2007 12:17 pm

Even with your wife in Canada, you could have made the argument that you were now a US resident, IF you had bought a place in US, and IF you stooped visiting canada (with your wife visiting you instaed), and IF you advised all your investment managers that you were now LIVING in the US, you could have been declared a "deemed non-resident", which would have avoided Cdn tax on your US wages.

Since this was maybe too much trouble, you decided to mainatin your Cdn residency (since you didn't do all the IFs I mentionned above), so your income is fully taxable in Canada.

This may not be a big deal, especailly if you live in Ontario. in most other provinces however, you probably paid a pretty good premium for leaving your wife in canada. At the very least, your commuter costs are cutting into your salary.

But many, MANY people are doing what you do. It's not a horrible mistake or anything, so don't woryy.

But be assured that if your wife had wanted to move to MI with you (and she commute to canada) thsi would have been entirely leal, and would have made you and your wife a non-resident of Canada for tax purposes.