Non resident tax implications after 2018 tax reform

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migrant
Posts: 6
Joined: Thu Oct 12, 2017 10:07 pm

Non resident tax implications after 2018 tax reform

Post by migrant » Tue Jan 29, 2019 2:56 pm

Hi Nelsona

Some background - I am a non citizen or PR holder of either US or Canada. I moved to Canada from US, middle of last year. I have been filling 1040 due to SPT (2017 and before). Initially, for 2018 I was planning to file as dual status, but with personal exemption gone does it makes more sense to file as resident for the whole year (i.e. report my Cad income and claim foreign tax credit). Also, in that case do I now need to report my TFSA savings accounts using 3520 forms? Unfortunately, I also own some small amount of mutual fund in my non-registered retirement account. Can i avoid filing 8621 due to the de minimus exemption?

Thank you

nelsona
Posts: 15811
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non resident tax implications after 2018 tax reform

Post by nelsona » Tue Jan 29, 2019 4:38 pm

You are allowed to do this in the last year of residency.
If you do, you are subject to PFIC and 3520 rules. Might have wanted to wait until year-end before funding TFSA.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

migrant
Posts: 6
Joined: Thu Oct 12, 2017 10:07 pm

Re: Non resident tax implications after 2018 tax reform

Post by migrant » Tue Jan 29, 2019 5:07 pm

Thanks again Nelsona. Yes, my mistake had the whole non-resident thing on my mind throughout the year. MF was granted through company match. Am I eligible to file proforma 1040 on 1040NR?

nelsona
Posts: 15811
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non resident tax implications after 2018 tax reform

Post by nelsona » Tue Jan 29, 2019 5:26 pm

If you are married, yes.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

migrant
Posts: 6
Joined: Thu Oct 12, 2017 10:07 pm

Re: Non resident tax implications after 2018 tax reform

Post by migrant » Thu Jan 31, 2019 2:47 pm

Yes, I am married. Just little confused - since I was part year US resident, am I allowed to use XXV clause?

thanks

nelsona
Posts: 15811
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Non resident tax implications after 2018 tax reform

Post by nelsona » Fri Feb 01, 2019 8:18 am

Just to clarify, if you left in 2017, why would you care about filing 1040 in 2018. SPT doesn't apply when leaving.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

migrant
Posts: 6
Joined: Thu Oct 12, 2017 10:07 pm

Re: Non resident tax implications after 2018 tax reform

Post by migrant » Fri Feb 01, 2019 4:07 pm

Sorry I left middle of 2018 and would pass SPT.

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