severing canadian residential ties

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sanfranman
Posts: 3
Joined: Thu Feb 19, 2009 5:46 pm

severing canadian residential ties

Post by sanfranman »

I am a Cdn resident working in the US under TN since Sep 2008. I am choosing to file a 1040NR and claim foreign tax credit on my T1 for 2008 tax year so I am maintaining residential ties with Canada for now. In this case, then what happens if I decided to sever residential ties with Canada for the 2009 tax year? What will be considered my departure date? Will it be Jan 1, 2009 or Sep 2008?

If it is the former, then should I get a snapshot of my investment gain/losses on Jan 1, 2009 in preparation for calculating my departure tax for 2009 tax year?

Also, what are the main disadvantages of severing residential ties with Canada?
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Merely filing a tax return is not a residentil tie. House and spouse are.

If you left in Sep 2008, that that is your departure date. CRA views jan 01 departure dates with suspicion.
What happened exactly on that date that made you non-resident. I suspect nothing. If you give up your appt in March, that will be your departure date.

File correctly, as a departing resident with a TRUE departure date. You will need the market value of your investments on that date.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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