Factual VS Deemed Canadian Resident?

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.

Moderator: Mark T Serbinski CA CPA

Post Reply
ClassicSax
Posts: 12
Joined: Sun Apr 10, 2022 5:05 pm

Factual VS Deemed Canadian Resident?

Post by ClassicSax »

My wife and I are both Canadian Citizens and we have a house, bank accounts, credit card, investment and family in Canada.
We moved solely for work in the USA 22 years ago and became US Citizens.
Since we move to the USA we spend most of our time in the US.
I retired at the end of Sept 2021 and now we spend most of our time in our Canadian house (Ontario). We do not have any US "salary" since October 1st 2021. We are going to permanently move back to Canada this year (2022).

Should we be considered a "Factual" resident and file Ontario Tax documents --- OR ---- File documents as "Deemed" Canadian Residents?
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Factual VS Deemed Canadian Resident?

Post by nelsona »

You do not meet any of the definitions of deemed resident of Canada, unless you actually spend 183 days in a calendar year in Canada, which you have not. You are not students, nor Govt workers.

So the question is whether you are a factual resident of canada, or are remaining a non-resident of canada,

Since you have a home in both countries, the question becomes whether you now live in canada or not? Do you have an Ontario Drivers license, have you applied for OHIP? Are you splitting your time between countries, or do you only go back to US on necessary business 9like to pre[p the sale of your house, etc)?
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
ClassicSax
Posts: 12
Joined: Sun Apr 10, 2022 5:05 pm

Re: Factual VS Deemed Canadian Resident?

Post by ClassicSax »

We do not have Ontario driving licences nor immatriculations. We are spending most of our time in Canada since the beginning of October and planning to reside mainly in Ontario for the year 2022 (89 days up to now for the year 2022).
In respect to the OHIP: I was under the impression that one needs to be for a 6 month non stop in Ontario to qualify. Am I wrong?
I am assuming that if our status is not Factual resident this year, this would change for the year 2022, at which point we would be "full" residents.
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Factual VS Deemed Canadian Resident?

Post by nelsona »

What makes you think that there is a event in the future that will suddenly make you Cdn resident, that has not already occured?

"Days" don't enter into the equation of when you BECOME resident. It happens when you meet the definition. You cannot choose an arrival date, without an actual event that happens on that date. (like the moving truck rolling in, the flight to canada, the custo,s declaration at the border, etc).

Forget "days". Think "event'
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
ClassicSax
Posts: 12
Joined: Sun Apr 10, 2022 5:05 pm

Re: Factual VS Deemed Canadian Resident?

Post by ClassicSax »

Thanks for this important clarification.
Post Reply