Canadian residency vs US residency

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nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Long question.

Short answer: the moment you went into canada and took the steps to beome Cdn resident (ie Health card, home, etc), you became Cdn tax resident.

The US citizen spouse, can hold off Cdn tax residency until 'landing', but not the other spouse.

As to how to report in US, do the 2 scenarios and see. Remebr that if you do file joint, the tax allocation is prorated across the board (ie. if you jointly made $100K, and yoou report $25K in Canada, you are only entitled to 25% of the tax callculated on the joint return, to use toward your credit.

(c) is NOT a viable option. Your WORLD income MUST be reported in Canada from March 1. The 'closer connection' option is a US term, not a Cdn one. You are a Cdn resident.

<i>nelsona non grata... and non pro</i>
Carson
Posts: 182
Joined: Wed Oct 27, 2004 1:00 pm
Location: Toronto

Post by Carson »

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by michsim</i>

Perhaps I was not clear enough:

The question boils down to this:

Is there anyway to use the amount of interest paid to TD Waterhouse on margin account in the US in the last few years as a deduction on the canadian return just as I seem to be able to use that interest as a deduction on schedule A on 1040. Is there some sort of treaty provision that would enable me to do this in order to match the interest in the two countries. If not the result is a punitive canadian tax and not much tax to pay in the US.

Thank you for your suggestions.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

I am certain that the unfortunate answer is NO. I can't think of anything under Canadian rules or the Treaty that would help you. The dividend is taxable in Canada when received, and you may only deduct the interest applicable to the period you were a resident in 2004.

/crh
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