re: Ties to the US

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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MCH
Posts: 40
Joined: Wed Mar 23, 2005 2:15 am

re: Ties to the US

Post by MCH »

I am Canadian working in the US on H1B visa. My wife (Canadian citizen)resigned from her job in Jan of 2005 to join me in the US. My son lives in our house in Toronto. If I purchase a home in the US, and my wife spend less than 6 months visiting Canada, would I be considered as having more ties to the US than Canada?
If so, do I have to file tax return in Canada for 2005?
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nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The fact that your son lives in your house is problematic, and creates a residential tie to canada that will rewquire you (and your wife) to continue filing in Canada, as a DEEMED NON-RESIDENT (DNR).

CRA consistently refuse to accept this 'non-arm's length' relationship with the tenant of your Cdn house as a sufficient break to grant you FACTUAL NON-RESIDENT status, but as long as you work in US, and your spouse is with you, you will proably be granted DNR status, meaning no Cdn tax on your US incoem, but need to report it (then deduct at line 256).

You need to get familiar with the emigrant and non-rsidnet guides from CRA.


<i>nelsona non grata... and non pro</i>
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