Is Deemed non resident from Jan 09 possible?

[GTAresident]

I came to US in Jan 09 from Day 1. I made one trip in April 09 and another before family moving in May from Canada. Since I was not commuting daily or weekly, I can be considered as deemed non resident of Canada. is that correct? But does that deemed non resident status give me any benefit in terms of saving on taxes since my family lived till end May 09 in Canada?

If no benefit then can I be considered as commuter? At least there would be a benefit to use 401K as RRSP contribution subject to available room.

[nelsona]

By leaving jan 01, 2009, you have in essence NO tax to pay in canada for 2009, other than deemed disposition, if any.

So, it is unlikley that any other manner of filing in canada will yield LOWER that zero tax. And it is much simpler than having to hunt for deductions and credits to reduce your tax.

[GTAresident]

Nelsona- Thanks.

The sticky point how do I convince CRA that my income is not taxable in Canada when my wife had decided to move to US with me during exploratory trip to US during accompanying me in first week of new job but returned to Canada when our house hunting was on.

She made trip to US to view houses and was in constant touch with realtor for follow up. Her move timing was decided by house closing date since we did not like the idea to move in a temporary accomodation and again move when we closed in.

Is it a good idea to take up with CRA now to get me approved as deemed non resident rather that contesting after CRA disallows my return claiming zero tax.

I have no other deemed dispositions.

What is your suggestion regarding getting DNR status approved?

[nelsona]

You don't "convince" CRA of anythinbg. You file as a non-resident.

Take up any fight later, since that will be even further down the road proving that you live in US.

It rewally didn't matter what your wife did. She didn't have to beciome non-resident when you did.

[GTAresident]

You mean just file 216 return for rental income for full 2009 tax year for Canada sourced income?

[nelsona]

on your half of the rent.

[nelsona]

pr have spouse report rent.

[GTAresident]

Nelsona,
I filed our returns to Ottawa International office and not sure whether we made error in it hence this posting.

Your advise from previous postings was useful. I filed non resident 216 rental income for 50 % income (25 % gross tax already with-held) only and spouse filed departure return with pro-rated non refundable tax credits etc.

However since my 216 rental income is insignificant, software automatically gives tax relief to spouse. This was corrected by manual override so that her tax does not reduce due to my low income as a non resident.

I have erred on cautious side due to doubt.

[nelsona]

That was correct. She would have had to report your world income on her page 1 to get any spousal amounts.