Electing first year choice to be a US resident

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sajith
Posts: 26
Joined: Tue Apr 26, 2005 10:43 pm

Electing first year choice to be a US resident

Post by sajith »

After reading some threads on this forum, now I am confused whether CRA would have recognized me a resident of US with first year choice to be treated as a US resident and therefore non-resident in Canada according to the treaty.

nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The fact that you had no res ties in Canada after July overrides the fact that you had not 'yet' become US tax resident.

Your intent, along with you absence of ties, was sufficient.

The need to clearly meet SPT would only be an issue in borderline res cases, which yours is not.

By the way, why would you have submitted an NR73 to CRA in the first place? This is not required, and usually gives headaches later on.



<i>nelsona non grata... and non pro</i>
sajith
Posts: 26
Joined: Tue Apr 26, 2005 10:43 pm

Post by sajith »

Nelson, I read in several places on the forum that NR73 gives trouble later on. Why is that? What can CRA does to people who have filed NR73?

What kind of potential trouble that I can expect? What kind of trouble that they have given to prople? Please reply me.
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

No need to insist on a reply.[}:)]

The fact that they have determined that you are non-resident is really meaningless. They could change their mind at any time, based on any information that comes to light, or they could find that your NR73 was inaccurate, or could simply come to the wrong conclusion.

You could have just as easily made the determination all by yourself, and there would be nothing on record from you on any other facts. Then, if something did get questioned a PROFESSIONAL could answer these correctly to avoid an unfavourable determination.

The best way of becoming non-resident, is to write a departure date on your return, notify any Cdn payors of your non-res statsus and leave it at that.

<i>nelsona non grata... and non pro</i>
sajith
Posts: 26
Joined: Tue Apr 26, 2005 10:43 pm

Post by sajith »

Thank you so much Nelson.
I did put the departure date on the last return. However I forgot to tell the bank. (I had a Canadian acct & a US acct with only few hundred dollars in them) I did not renew my driver’s license or OHIP which had an expiration date. I only had less than a dollar in interest in bank accounts. I did not report that to CRA or IRS. What should I do?
nelsona
Posts: 18363
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Tell your Cdn bank.

In future report ALL income.


<i>nelsona non grata... and non pro</i>
sajith
Posts: 26
Joined: Tue Apr 26, 2005 10:43 pm

Post by sajith »

I have to ammend 1040s for 2002 anyway to submit rev.proc. 02-03 for RRSP deferal.

What if I report the interest of few dollars I forgot in 2002 at the same time to IRS? That won't probably change the taxes since US taxes are charge for income ranges.

Will they impose penalties for not reporting interest even though they are a few dollars and my taxes won't change?

sajith
Posts: 26
Joined: Tue Apr 26, 2005 10:43 pm

Post by sajith »

Thanks for your help Nelson [8D], I got all my taxes done. Now I can rest for a year with out thinking about IRS. Now I have to pay attention to Immigration stuff. My renewal is comming up in few months.
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