TN Visa renounce Canadian residency

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bayarea_dreamer
Posts: 9
Joined: Sun Oct 07, 2018 5:03 am

TN Visa renounce Canadian residency

Post by bayarea_dreamer »

Hi,

I just moved to US and have a full time employment here on TN visa. It will be great if I am able to get some information regarding my tax implications in Canada now. I want to renounce my Canadian residency so that I pay taxes only in US. Here are some salient points:

1. My spouse is still in Canada (Calgary) but she will be moving to US by the end of this year or early next year. She currently has a TD visa (TN dependent) and is applying for jobs to secure her own TN visa. We do not plan to return back to Canada anytime soon and will be living on US for most part of the year (Except for a few temporary visits to Canada to meet family and friends).
2. We have a house in Canada which we are planning to rent out once my wife moves to US.
3. We have Canadian bank accounts, RRSPs, mutual funds, credit cards, bank lockers, TFSA investments and some other consumer cards like Costco, Bay etc.
4. We have Alberta health cards which probably we will return back.
5. We will not be buying a house in US for 1-2 years from now, I am currently living with my brother in US but will rent a place once my wife moves here in US.
6. I have already registered my vehicle in US and will probably get a driving license soon. My wife will sell her car before leaving Canada and will get a driving license in US when she moves here.

I am not much concerned with 2018 taxes because I have lived in Canada for the most part of the year, but 2019 taxes is a big concern for me because if I have to pay taxes in both US and Canada it might be a major difference that I will have to pay to CRA.

So in order to renounce my Canadian tax residency what steps should I be taking- like do I have to sell the house and close some of the accounts etc.?
bayarea_dreamer
Posts: 9
Joined: Sun Oct 07, 2018 5:03 am

Re: TN Visa - how to renounce Canadian residency?

Post by bayarea_dreamer »

bayarea_dreamer wrote:
> Hi,
>
> I just moved to US and have a full time employment here on TN visa. It will
> be great if I am able to get some information regarding my tax implications
> in Canada now. I want to renounce my Canadian residency so that I pay taxes
> only in US. Here are some salient points:
>
> 1. My spouse is still in Canada (Calgary) but she will be moving to US by
> the end of this year or early next year. She currently has a TD visa (TN
> dependent) and is applying for jobs to secure her own TN visa. We do not
> plan to return back to Canada anytime soon and will be living on US for
> most part of the year (Except for a few temporary visits to Canada to meet
> family and friends).
> 2. We have a house in Canada which we are planning to rent out once my wife
> moves to US.
> 3. We have Canadian bank accounts, RRSPs, mutual funds, credit cards, bank
> lockers, TFSA investments and some other consumer cards like Costco, Bay
> etc.
> 4. We have Alberta health cards which probably we will return back.
> 5. We will not be buying a house in US for 1-2 years from now, I am
> currently living with my brother in US but will rent a place once my wife
> moves here in US.
> 6. I have already registered my vehicle in US and will probably get a
> driving license soon. My wife will sell her car before leaving Canada and
> will get a driving license in US when she moves here.
>
> I am not much concerned with 2018 taxes because I have lived in Canada for
> the most part of the year, but 2019 taxes is a big concern for me because
> if I have to pay taxes in both US and Canada it might be a major difference
> that I will have to pay to CRA.
>
> So in order to renounce my Canadian tax residency what steps should I be
> taking- like do I have to sell the house and close some of the accounts
> etc.?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TN Visa renounce Canadian residency

Post by nelsona »

From what you sate, you will not become non-resident until she moves to US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
bayarea_dreamer
Posts: 9
Joined: Sun Oct 07, 2018 5:03 am

Re: TN Visa renounce Canadian residency

Post by bayarea_dreamer »

Yes. She is moving here around Christmas vacations. What steps will I need to take in order to become non-resident after she moves?
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TN Visa renounce Canadian residency

Post by nelsona »

file your 2018 return as a departure return, next spring.
Be sure you stop receiving any Govt money (GST/HST, etc), and tell all your financial institutions that you are a US resident at that time.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TN Visa renounce Canadian residency

Post by nelsona »

To make things easier in US, you should close any TFSA and transfer RESPs to a Cdn relative. You will also have to close any non-registered investment accounts.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
brianbbc
Posts: 87
Joined: Fri Apr 25, 2014 9:17 pm

Re: TN Visa renounce Canadian residency

Post by brianbbc »

I did that years ago. Make sure you get confirmation from CRA that they accept your NR status, give them a call after you file your last Canadian return.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TN Visa renounce Canadian residency

Post by nelsona »

When you file the departure return, the assessment will acknowledge that your departure date was accepted, either implicitly or explicitly.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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