Determine Canada (Deemed) Non-resident

[zhu390x]

Hello! I wonder if I can be considered as a Canada deemed non-resident given my situation:

* I've been living in Canada for years, and moved to the U.S in 2023 June due to work.
* I rented an apartment in Seattle. I obtained US WA driver license, US WA vehicle plate. I've been consistently using my US credit card.
* I have a condo in Canada Vancouver, and rent it out since I moved to the U.S.
* My wife is still working and living in a rented condo in Canada Vancouver. She owns a townhouse in Toronto and rent it out, but filed Sec45(2) election to keep it as principal residence. Our first child was just born in 2025 February.
* We filed tax separately all the time.
* I travel back to Canada Vancouver sometimes and stay a few weeks with my wife. I spent about 200 days in the US, and 120 days in Canada in 2024.

I intend to file my 2024 Canada tax as deemed non-resident (plus departure tax on Jan 1 2024), to avoid pay tax to Canada for my US employment income.
I consulted multiple CPAs and get different answers.

[nelsona]

In my opinion, you have spent too much time in Canada to be considered non-resident -- deemed or otherwise. Tp be a deemed non-resident, you must satisfy TREATY definition of resident of US. By spending so much time in Canada with your spouse, (and child) you demonstrate that your centre of vital interest is in Canada, which is a key treaty element. While you might not own a place that you can live in in Canada, you can certainly live with your spouse, so you cannot use that to say you are US resident.

By the way, nothing "happened" on jan 01, 2024, that would change your status. It does not meet any definition of "departure date"

[zhu390x]

@nelsona Thanks for your reply!

> By spending so much time in Canada with your spouse, (and child) you demonstrate that your centre of vital interest is in Canada, which is a key treaty element.

If I'm a Canada resident, does this make me a US non-resident? Or I should be a resident of both Canada and US given my presences (200 days in the US, and 120 days in Canada).

---

The CPA I'm working with now is filing "deemed non-resident" plus "departure tax on Jan 1 2024". Should I trust and continue? What's the worst consequence?

[nelsona]

You can *elect* to be treated as a non-resident of US, but I'm quite sure you would be better off tax-wise to file like a resident (ie. full year 1040).

I have given you my opinion on how to file.