apply for non-resident of Canada

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maskdoll
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Joined: Sat Aug 17, 2019 12:40 am

apply for non-resident of Canada

Post by maskdoll » Wed Aug 21, 2019 8:21 pm

My husband is considering applying for non-resident of Canada to avoid filing CRA tax returns.
He works in California full time, but I am living in Canada with kids. We have a home here with some mortgage on it.

I guess it's not likely to get approved by CRA for non-resident. Am I right?

nelsona
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Re: apply for non-resident of Canada

Post by nelsona » Sun Aug 25, 2019 9:40 pm

He would be considered a deemed non-resident, which is exactly treated like a non-resident. This would be if he doesn't visit you, but instead you visit him.
He can generally decide this himself, and then only supply proof if asked. The starting date would be when he left Canada.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

zwz002
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Joined: Tue Oct 01, 2019 10:01 pm

Re: apply for non-resident of Canada

Post by zwz002 » Tue Oct 01, 2019 10:50 pm

I have a similar question so I figured I'll ask here instead of starting a new thread. My wife and kids and I moved from the US to Canada last year as PR and plan to become Canadian citizens once we meet our residency requirements. We plan to leave Canada after we receive our citizenship and move back to the US. We own a house in Canada now as well as a few rental properties back in the US. I want to leave before we hit 5 years so there's no departure tax levied on my assets outside of Canada. My question is, if my goal is to become non-resident of Canada for tax purposes after we get our Canadian citizenship, what are some of the things that I need to do to make sure we are factual/deemed non-resident? For instance, can I keep the property that we own and not rent it out after we leave? Can we still come to Canada for short periods of timetime for vacation or kids camps? Thanks!

nelsona
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Re: apply for non-resident of Canada

Post by nelsona » Wed Oct 02, 2019 7:03 am

Because of the US/Canada treaty, once you and your family physically move to US and live there, you are a non-resident of Canada for tax purposes, regardless of how many other property/financial ties you have in Canada. visits would not impact this.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

zwz002
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Joined: Tue Oct 01, 2019 10:01 pm

Re: apply for non-resident of Canada

Post by zwz002 » Wed Oct 02, 2019 10:06 am

Thanks Nelsona. So then why wouldn't the OP's husband be able to visit her in Canada in order to stay non-resident?

nelsona
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Re: apply for non-resident of Canada

Post by nelsona » Wed Oct 02, 2019 4:45 pm

Because a spouse still living in Canada is a major tie, which must be outweighed by more ties in US. By visiting that spouse one is showing that their center of living is still Canada making them remain CDn tax resident, rather than if the spouse visiting US instead.

Once the entire family moves to US, as would be in your case down the road, visits to Canada are no more meaningful that visits to any other country.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

zwz002
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Joined: Tue Oct 01, 2019 10:01 pm

Re: apply for non-resident of Canada

Post by zwz002 » Fri Jul 17, 2020 4:52 pm

nelsona wrote:
> Because of the US/Canada treaty, once you and your family physically move
> to US and live there, you are a non-resident of Canada for tax purposes,
> regardless of how many other property/financial ties you have in Canada.
> visits would not impact this.
Sorry for bumping up this old thread. If I'm going to use the tax treaty to prove residency in the US, do you advise filing NR73 on the year of departure from Canada?

nelsona
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Re: apply for non-resident of Canada

Post by nelsona » Fri Jul 17, 2020 6:45 pm

No. Simply declare your departure daye on your return in the year you leave. If CRA doubts you, let them ask for NR73. From what you described, as I expalined before, you won't be making a treaty claim, but will be "simple" non-resident.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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