Candian GC holder going back to Canada for a few years

[OttawaSenators]

Due to a family emergency, I need to go back to Canada for a few years. I am working on getting a Re-entry Permit on the immigration front. What is the general advice on the tax front for such a move of a temporary nature? File 1040 every year on Canadian income (most prob I'll get a job in Canada)? How to handle the Canadian income tax while there and also upon returning to the US for good? Leave 401k as is (got a combo of Roth and traditional)? Sell the stocks before moving just to simplify things?

Thanks in advance!

[nelsona]

Since you will be trying (at least) to keep your GC alive, you will continue to file 1040 every year.
Since you will not likely be taxable in US on Cdn income you should, like most returnees, sell any stock losers you have before leaving. You do not have to sell your other stocks when you leave, since you can transfer these to a CDn brokerage if you wish. Mutual funds cannot be transferred.

You will be subject to deemed acquisition when you arrive in Canada, so that is why you sell losers before.
Tip: if you plan to return to US, you are able to avoid deemed disposition when you leave if you hold on to stocks that you had when you arrived in Canada.

Make sure you report the existence of your Roth or Roth401(k) on your first Cdn return, and do NOT make any contributions to them while considered a Cdn resident.

Just a warning that I will be VERY difficult to keep your GC alive for much longer than 2 years on your I-131. You may need to get an SB-1 visa after that which may or may not be easy to get. Get some solid legal advice on how to keep your GC, or even how to apply for another one later if it is eventually cancelled or confiscated. You worked pretty hard to get your GC, it would be a shame to lose it so soon after getting it.

[nelsona]

Generally speaking, family emergencies that last longer than 2 years do NOT qualify for extended Re-entry permits past the first one.

[OttawaSenators]

Thanks for the reply. I hope the Canadian Turbo Tax is as straightforward as the American one so I can enter the Roth 401k amount.

As for GC, I wasn't actually keen on it. My employer's HR forced me to get it by threatening that I was interfering with my employablity at their company had I kept renewing TN. I filed the WOM lawsuit mainly out of principle, plus I wanted to get out of the cycle of renewing EAD for years.
Family comes first for me. I have an ailing father in Ottawa who almost died a few months ago. And my mum is too old too. I talked to a couple of lawyers and they said the first 2 re-entry permits should be fine. I should maintain a US address for both banks/brokerages and USCIS. I'll use my cousin's address and will come down to stay with him at least 1 month of the year. Another option would be get a job in Boston or NY so I can be an hour flight away from my folks.

[nelsona]

I got citizenship for this very reason, and am leaving US next year for that reason, too. Retiring.