canadian working in usa income tax issues

ksh006 · Post by **ksh006** » Fri Dec 21, 2012 12:18 am

Hi,

Here is my sistuation, im actually worried.
-I moved to US in september 2007and have been working since then transition from TN visa to green card now.
-Im a secondary owner of house in canada that my dad bought. I put my name on it to help my dad get the mortgage, other than that I dont have any claims to it.
-In 2008 i started filing us tax (for 2007 income) to IRS, no issues
-In 2008 Ialso filed my taxes to Canada Revenue, i had Canadian income up until Setptember 2007 and from September to December US income. In my filing to Canada revenue i reported both incomes. no issues.
-Since then of course I continued filing with IRS but, not Canada Revenue because my intention was for permanent move to US.
-I never renewed my Ontario health card, which expired in 2008. Closed my bank account there and never renewed Driver License.
-I dont have any other connections to canada, i.e. investment accounts etc.
-Now IRS send a letter just this December 2012 to my address in canada (dads home) requesting me to file for taxes.

I dont know what to do? what should be my next steps? and Im worried they will request me to pay taxes since 2008? I never filed from Non Resident.

Thanks.

nelsona · Post by **nelsona** » Fri Dec 21, 2012 5:56 am

You left canada in 2007, so you should have filed a departure return, on which you would pay any deemed disposition tax on your investments, and not reported any US income.

You said "IRS" is asking for you to file taxes? Did you mean CRA (Revenue canada)? Surely you have been filing IRS taxes all along.

After that, you would not file any return in canada, so that is fine.

Assuming that the house you and your father bought is not being used for rental purposes, I would not worry at this point. You may have to amend your 2007 Cdn return to make it conform with departure.

ksh006 · Post by **ksh006** » Fri Dec 21, 2012 1:34 pm

Thank you for your reply nelsona.

You are correct I meant to say CRA.
Both my parents still live in the house just the two of them. There were a period, 2 years out of last 5 years where my sister lived there with her kids and she paid symbolic amount of rent and they both reported in their taxes, she moved out this September.

At the time when I filed Canadian taxes in 2008 in Canada, HRblock provided me with an international tax expert so I counted on her to file what was needed based on my situation, obviously we missed something.

Should I respond to CRA letter explaining my situation or is there any form that I should fill and send back? Is this going to be a big nightmare?

nelsona · Post by **nelsona** » Fri Dec 21, 2012 3:00 pm

I would simply write them saying what you told me about when you left. If your parents reported all the rent they receieved, then you are fine.