How to determine Departure Date in my departure return?

nelsona · Post by **nelsona** » Tue Jan 14, 2014 10:18 am

Yes, for those years, up until Nov 2012, he could elect to file 1040NR (by claiming to be non-resident by treaty). There were probably better ways to file, but as long as all his US tax was being used on his Cdn return, there is no harm (I suspect that his 1040NR wasn't 100% correct if he did not refer to a specific treaty article, but no matter at this point).

But as of Nov 2012, he was noi longer a US non-resident by treaty. (He was a US tax resident since at least 2011 ,if not earlier.

So his reporting of US income should have stopped in Nov 2012, and included a nov 2012 deprture date on his (and your ) Cdn retuinr. Becasue this was late in the year, a 1040NR was still allowed to be filed. although t would probably have ben better to file a 1040. Again, probably no matter at this point.

So, you both need to fix your 2012 Cdn returns.

And for 2013 you file joint 1040 full year.

stellal · Post by **stellal** » Tue Jan 14, 2014 1:03 pm

Thanks for your posts. You helped us a lot.

stellal · Post by **stellal** » Tue Jan 14, 2014 1:32 pm

Just thought of another question, when I sold my house I sold it as Cdn resident, so if I report 2012 as my departure year, will I be fined for not following non-resident rule ($2500) in 2013.

Thanks a lot.

nelsona · Post by **nelsona** » Tue Jan 14, 2014 1:45 pm

Maybe, that would be for CRA to decide. Considering that if you do this properly you will not have anything to file in 2013, I would not worry about this.
But you WERE a non-resident by then. And your spouse, who also owned the house was definitely a non-resident by then, so at least he should have been alerting your broker about his status.

So, you needed to be more vigilant then. Nothing to be done now. Fix 2012 and 2013 won't be an issue.

stellal · Post by **stellal** » Tue Jan 14, 2014 2:11 pm

Thank you for your quick response.

If I report departure year as 2012, I still have some issues to deal with

1. After we sold our house, we put the money into a Cdn saving account and it generates interest about 2K till the end of last year, because I did not tell bank I am non-resident, so bank did not keep 25% of the interest income, how to deal with that?

2. In 2013 I still contributed RESP, how to return the $500 to government?

3. My daughter is less than 6 years old, so we still receive $100 UCCB every month, how to stop that benefit and repay the amount starting from the end of 2012.

4. We sold some stocks in 2013 and the stocks is in US, because it is registered as canadian, so the check was mailed to Canada, do we need to pay tax even if we became non-resident. We definitely will report this income to US.

Thanks a lot, looks like it is a mess, a lot things needs to be fixed.

nelsona · Post by **nelsona** » Tue Jan 14, 2014 2:23 pm

1. There is no Non-resident tax for interst anymore, taht was done away with years ago. Where are you getting your out-of-date information?

2. ask them.

3. You should not have recieved this as soon as you left. you will need to return it. That is true whether you pretend to be resident or not.

4. On your departure return, you have deemddisposition of all your assets, that will take care of Cdn tax.

You really needed to seek advice in 2010. 2011, 2012, 2013. ASll of this pretending to be resident stuuff was very simple to handle back then. Not so easy now.

Read the emogrants guiide from CRA before asking anymore questions, please.

stellal · Post by **stellal** » Tue Jan 14, 2014 2:28 pm

Thank you a lot. Now I understand my situation, I really appreciated your help.