I work and live with TN from Jan,2001. I paid all US tax as resident of US. When I filed for canada tax of 2001, I didn't state I was "departing" and report last paycheck from my prior canadian employer which I received in Jan 2001.
What's the problem i would meet if I return back Canada? My Driver Licence expired and I never use MHOP since I left canada. My wife lived in US also.
Thanks!
Need amend Cdn tax or not?
Moderator: Mark T Serbinski CA CPA
I would review your 2001 tax return, reducing my personal ammount and reporting any deemed dispositions on that return.
Not indicating a departure date is not a big problem for subsequent years, since it is pretty obvious you are not a Cdn resident.
But you most likely underpaid your Cdn taxes for that year, and if you had investments when you left, you have failed to report the deemed disposition, so you could open yourself up to some penalties (right now, not just when you go back).
But CRA cannot go back indefinitely. If they don't say anything this year, I wouldn't worry about it. Trouble is,they proably don't have your adress, so you don't know if they are looking for you or not.
<i>nelsona non grata</i>
Not indicating a departure date is not a big problem for subsequent years, since it is pretty obvious you are not a Cdn resident.
But you most likely underpaid your Cdn taxes for that year, and if you had investments when you left, you have failed to report the deemed disposition, so you could open yourself up to some penalties (right now, not just when you go back).
But CRA cannot go back indefinitely. If they don't say anything this year, I wouldn't worry about it. Trouble is,they proably don't have your adress, so you don't know if they are looking for you or not.
<i>nelsona non grata</i>
thank you for your replies. My detail situation is following,
I owned a house jointly with my parents. In 2002, I transferred the title to my brother as a gift. My parents and brother live in that house. And it was the address I used for CDN tax return. So far I didn't receive notice from Canada Revenue. I am not sure whether my 2001 is underpaid.
Do you mean 3 years are the statue limitation? And does CDN tax have different regulation about gift tax?
Thanks!
I owned a house jointly with my parents. In 2002, I transferred the title to my brother as a gift. My parents and brother live in that house. And it was the address I used for CDN tax return. So far I didn't receive notice from Canada Revenue. I am not sure whether my 2001 is underpaid.
Do you mean 3 years are the statue limitation? And does CDN tax have different regulation about gift tax?
Thanks!
As i know, owning a real property is OK as non-resident. I didn't live in that house and I live in US for the whole year. In previous posts, it is said rental real property is ok, why here my property would not be ok? Do you mean if I charged my parents for the house in 2001 and 2002, it was not a tie?
thanks!
thanks!
Our poster would no doubt be deemed to be non-resident from jan 2001 forward, since her centre of vital interests is clearly US, even if they didn't own a house in US.
The owning of the house for one year past departure would be a reporting issue (in the sense that non-rsidents must comply with special reporting when selling real estate), but not a residency issue, nor even a Cdn tax issue, since one can sell their former principal residence one year after leaving Canada and not be subject to Cdn cap gains.
I would simply be looking at how much tax I owed CRA for 2001, and making sure it was not much (for a month it is likely peanuts), and then waiting out the year, not ammending my return, and certainly not filing an NR73.
<i>nelsona non grata</i>
The owning of the house for one year past departure would be a reporting issue (in the sense that non-rsidents must comply with special reporting when selling real estate), but not a residency issue, nor even a Cdn tax issue, since one can sell their former principal residence one year after leaving Canada and not be subject to Cdn cap gains.
I would simply be looking at how much tax I owed CRA for 2001, and making sure it was not much (for a month it is likely peanuts), and then waiting out the year, not ammending my return, and certainly not filing an NR73.
<i>nelsona non grata</i>
Thank nelson clear answer.
So is it recommended to ammend 2001 and 2002 CND tax? As I know, in US, such gift would not trigger gift tax because of exemption amout, which means no gift tax return was required. I am not sure, whether Canada treat such transaction differently, so that made me must report such transaction?
thanks!
So is it recommended to ammend 2001 and 2002 CND tax? As I know, in US, such gift would not trigger gift tax because of exemption amout, which means no gift tax return was required. I am not sure, whether Canada treat such transaction differently, so that made me must report such transaction?
thanks!
An empty house 100% in her name would still be fine.
What has changed is the birth of the deemed non-resident status, since 1998.
Now moving to a treaty country requires almost no breaking of Cdn residency, so long as you satisfy the residency requirements of the other country, and 'outweigh' your Cdn residency, by work, spouse, time and/<b>or</b> other ties.
If I were leaving canada today for the US, I would not do a single thing to any Cdn tie -- except drag the family down with me since I'm not a US citizen -- unless and until it was convenient for me to do so, and would have no problems putting March 11, 2005 on my Cdn departure return.
Since the release of IT-221R3, it is a new day.
<i>nelsona non grata</i>
What has changed is the birth of the deemed non-resident status, since 1998.
Now moving to a treaty country requires almost no breaking of Cdn residency, so long as you satisfy the residency requirements of the other country, and 'outweigh' your Cdn residency, by work, spouse, time and/<b>or</b> other ties.
If I were leaving canada today for the US, I would not do a single thing to any Cdn tie -- except drag the family down with me since I'm not a US citizen -- unless and until it was convenient for me to do so, and would have no problems putting March 11, 2005 on my Cdn departure return.
Since the release of IT-221R3, it is a new day.
<i>nelsona non grata</i>
A person selling their house one year after leaving canada is not subject to cDn tax, due to the manner in which gains are calculated for a 'change of use'.
Remember the 'years plus one' rule.
failing to report, if no tax is owed, is slightly worse than tearing off the tag of your matress. Nothing needs to be done at this point.
The gift-sale would be reportable in US, but as a gift, not as cap gains, because of the 2 year US rule.
By the way, have you read all of the grasmick tax forum, as your hypothetical questions are all answered there.
<i>nelsona non grata</i>
Remember the 'years plus one' rule.
failing to report, if no tax is owed, is slightly worse than tearing off the tag of your matress. Nothing needs to be done at this point.
The gift-sale would be reportable in US, but as a gift, not as cap gains, because of the 2 year US rule.
By the way, have you read all of the grasmick tax forum, as your hypothetical questions are all answered there.
<i>nelsona non grata</i>