Residency / Departure Tax Return to CRA

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tigerjk
Posts: 12
Joined: Mon Mar 07, 2016 3:51 pm

Residency / Departure Tax Return to CRA

Post by tigerjk »

Hello. I am a Canadian working in California on a TN having left Canada in August 2015.
Since I do not pass the substantial presence test in the US, I am filing a 1040NR for the US return as a non-resident.

Does this automatically make me a resident of Canada? The only ties I have left in Canada are 1. A rental property 2. Canadian bank accounts (including RRSP and TFSA)
I'm assuming that I must be treated as a "resident" in at least one country, right?

I've read places where it says I must file a "departure/exit" return to CRA to be treated as a non-resident to Canada but have no idea on how to do this. Any help on this topic would be greatly appreciated!

Ps. If anyone in the Bay Area (specifically San Francisco) can refer an accountant that is competent in these matters please PM me! All this research is starting to take a burden on me :(
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

How you file in US has no bearing on the fact that you departed Canada. You are allowed to be non-resident of either for those few months of transition.

Look for "emigrant" on CRA website. You file as a resident of your last province but with a departure date on page 1, along with other departure requirements.

Ufile can easily handle this.
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
tigerjk
Posts: 12
Joined: Mon Mar 07, 2016 3:51 pm

Post by tigerjk »

Thanks for the reply nelsona.

I did not realize I was allowed to be classified as an "emigrant" while under a TN visa, which is granted on condition that I maintain significant ties to Canada. But I'm guessing comparing immigration residency and tax residency are comparing apples and oranges?

Thanks again! Really appreciate your help on this forum.
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

TN is NOT granted based on maintaining significant ties in Canada. You are free to live 100% in US during this time. False misconception. You only have to promise to leave when TN is up. TN is NOT a tourist or student status.
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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