I am moving from Alberta Canada to Miami Florida to work on a TN Visa. Iâ€™m departing Canada March 31, 2018 and start working in Miami April 2, 2018. Iâ€™m trying to figure out what my 2018 Income Tax filing will look like. I think I have most of it under control, but I have some questions when it comes to dealing with 10 non-voting private farm corporation shares that I will retain while in the U.S.
Summary of what Iâ€™ve done thus far:
1. Iâ€™ve liquidated all my non-RRSP investments and closed my TFSA accounts and transferred all that money to my Canadian savings account (I left my RRSP alone). I will contact the bank to set up a withholding account to retain and submit 25% of the interest each month; at the end of each year I will expect to get, or request, a NR4.
2. I have a condo which I intend to rent out at some point later in the year. I will designate a withholding agent and have them call CRA to set up the non-resident withholding account, submit form NR6, and until the NR6 is approved have them submit 25% on the gross rental income. Each year the withholding agent will provide to CRA a NR4 and NR4 Summary, and to me a NR4.
3. I have 10 non-voting shares in a private farm corporation which I have to hold onto. I do not get any dividends on these shares and I will not be selling or transferring them while Iâ€™m in the US - I guarantee these shares will not be touched by myself or the farm corporation. (At this time my intention would be to â€œunwindâ€ these deemed dispositions when I return to Canada.)
Next year, when itâ€™s time to file my 2018 Canada Departure Income Tax:
- I will complete Schedule 3
- I will report the capital gains from the non-RRSP shares liquidation.
- I will file a Section 216 for condo rental income between April 2018 - December 2018 (which includes the NR4 form from my agent).
- I will file the T1161 which will include my condo (which is not a deemed disposition but CRA told me it should be included on the form) and the farm corporation shares.
- I will file the T1243 for the farm corporation shares.
- I will file the T1244 to defer any capital gains realized on the farm corporation shares (I expect the capital gains owing will be approx. $15,000)
Next year, when itâ€™s time to file my 2018 U.S. Income Tax:
- I will report my US income from April 2018 - December 2018
- I will report the interest gained from my Canadian savings account (the bank should provide a NR4 which I may be able to use for foreign tax credit).
- I will report any Canadian condo rental income, including the NR4 withholding tax slip.
- I will report my RRSPâ€™s in Canada.
- Do I need to report the condo and farm corporation shares on my U.S. Income Tax (maybe Form 8833?)
- If I do have to report these Canadian deemed dispositions for 2018, do I have to include them on every U.S. Income Tax filing thereafter?
- How do I handle the farm corporation shares? If Iâ€™ve filed Form T1244 on my Canadian Income Tax to defer any capital gains from these shares, do I need to include any of the deferred capital gain on my U.S. Income Tax? Or will I have to pay U.S. on the capital gains?
- When it comes time to file my 2019 US Income Tax (in 2020), because I will not have received any dividends from those 10 shares do I need to include them anywhere when I file?
These farm shares make me a little nervous as I cannot do anything to affect that corporation in anyway.
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