Stock loss and Residency question

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dglange
Posts: 4
Joined: Tue Jan 04, 2005 9:04 am

Stock loss and Residency question

Post by dglange »

Two unrelated questions:
1) Can I or my wife retain Canadian residency if I am on an H1-B visa in the US and don't live the required 6 months in Canada? (I'm currently on an F-1 so this hasn't been a problem so far.) We have a son with severe cerebral palsy and have access to a care home but only if we are residents of Canada.

2) Since there is no income tax on a loss in investments in the stock markets, am I still required to file something?
Thanks Dirk

DL
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

1. Be careful that you are not confusing several meanings of 'residency'.

For Cdn tax purposes having a home available to you and/or having your spouse or dependants living in Canada is sufficient (and necessary) for you to be considered a <b>tax </b> resident, even if you are not spending any time in Canada.

For provincial healthcare coverage, qualifying means having your main home in that province 100% of the time AND being physically in Canada 183 days a year (it's 150 days for OHIP). You lose your provincial coverage if you stay out of the country enough days. Your F1 status was not sufficient grounds to keep your card in my opinion, regardless of your tax status, unless you had prior authorization from the Province.

As to what residential requirements the 'care home' has; I suspect that it is the latter. On the other hand, it would be your child's days in Canada that would determine if he is covered or not, no?

Without more info on your situation, I would say that if your wife and child stay in canada while you are in US, then the coverage should be secure. if you are all living in US (either when on H1 or even while you are on F1) your provincial health coverage (and your care home) is in jeopardy

2. Such loss is classified as a capital loss, and while no tax is fue, it can be used in future gainst capital losses. To be able to use that loss however, you MUST report it in the year it occurs. Remember too, that a loss is only a loss when you actually sell.

<i>nelsona non grata</i>
dglange
Posts: 4
Joined: Tue Jan 04, 2005 9:04 am

Post by dglange »

Thanks Nelson - very helpful response as always! Dirk

DL
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