TAX questions

[ainu.afnu]

Hi,

Need help for these questions:

I was living in Ontario and started my new full time job in NJ on 11th May, 2015. My family moved to NJ on 6th July. I transferred my RRSPs to TD waterhouse before moving. I rented out my house in Ontario in Aug 2015. Returned our drivers licenses.

Questions:

1. Am I considered a deemed Non- Resident for tax purpose?

2. Family moved on July 6th. Any implication of 183 days rule or still Considered a deemed non resident?

3. I am doing Canadian tax return as Deemed Non Resident with Section 216 for Canadian rental income. Is that correct?

4. Do I need to declare my U. S employment income under S.216 as employment income outside of Canada?

5. Do I need to pay any tax to CRA for my U.S Employment income? If yes, for the entire U.S period of 2015 or just for the income between 11th May and July 6th?

6. We did a property evaluation of my house on 6th July by a evaluation company. Do I need to inform the value to CRA now, or it can be done later if I sell or return to that house? If yes, which form need to be used now?

Thanks in advance.

[nelsona]

1. neither. You are considered an emigrant.
2. Again, neither. You emigrated. The date YOU emigrated is either may 11 or July 6th, depending on ehat you Cdn activities were between those two dates. For your spouse, the date is July 6.
3. Incorrect. Your 216 return (one for you one for your spouse) covers ONLY the rental income, it has no place for any other income. you will both still have to file a departure return for the first part of the year.
4. Not on 216. You would have to report your US income from may 11 to July 6th (if that is your departure date)
5. See 4.
6. That was a good move! You keep this for your own records until you sell.

And you will also want to file a full-year 1040 reporting world wide income for the entire year

So, other than point 6, you need to re-valuate your tack. Late in the spring to start do ing this.

[ainu.afnu]

Hi Nelsona,

Thanks for your answers.

I am using a tax preparing SW. To clarify the emigrant question. Can you pls tell me what should be my answer for the following questions?

1. What province did you live on Dec 31, 2015?

a. Canadian provices.
b. Non Resident
c. Deemed Resident
d. Non resident s.216

I guess Non Residnet s.216 because I have rental property. Am I right?


2. Residency status of Dec 31st, 2105?

a. Non Residnet
b. deemed non resident
c. Deemed resident because I stayed more than 183 days
d. Deemed resident for other reason.

I guess non resident as you mentioned I am a emigrant. Am I right?


3. Tax tool does not ask for when I left Canada. Which form to input this info?

4. My emigrant date should be May 11th or July 6th? I was working and living in USA since May 11th. My wife move to USA on July 6th.

5. If it is May 11th for me then I dont have to pay tax for U.S between May 11th and July 6th, right?

Thanks again.

[nelsona]

1 A and D. You will be filing TWO Cdn returns.
A the question should actually read 'in what province did you live on dec 31 OR ON YOUR LAST DAY OF RESIDENCY
B you cannot file a non-ressint return until the year AFTER you leave
C you are not a deemed resident because you are not a student or government worker living abroad.
D You ALSO need a 216 return which will include your rental income ONLY

2. You are an emigrant. Answering the first question correctly will remove this question

3. again, by answering the first question correctly the software should reveal this option

4. That is for you to decide, I have written extensively on how this decision is made, so I won't go into it here. You should have had this decided by now

5. Correct. You will only report US income earned before your departure date on your Cdn return.

YOu will also be filing a full year 1040 reporting all world income jointly with spouse.

[nelsona]

I'm afraid that will be all the questions I can answer for you.