Canadian in US on TN - Taxation

nkanwar · Post by **nkanwar** » Mon Mar 10, 2008 10:00 am

Hi, How are you all doing today.

My situation seems similar to a lot of people on this forum, and wondering if you can direct me to a concise set of documents on filing my returns individually or alternatively an experienced accountant in the NY city area.

Status:
1. Am a Canadian citizen
2. on a TN visa since Dec 18, 2006.

Employement:
1. My company was relocating me, and was paid as a Canadian employee until Feb 28, 2007.
3. US employee since March 1, and on US payroll.
4. I switched jobs at the end of 2007, and am now on a new TN visa with a US company.

Rental Income:

1. My condo in Canada has been rented since June 2007, and have lost approx $400/month when using
rental income = rent - (mortgage + taxes + maintenance) = $400 (loss)

Thanks for your help,
NK

nelsona · Post by **nelsona** » Mon Mar 10, 2008 11:34 am

You need to look at the Emigrants guide on the CRA website. This will cover all aspects of filing your departure return for 2007, including departure tax and non-residency issues. You will also need to do something about your renatl income, otherwise you owe 25% tax on the gross rent to CRA.

As to US taxes. You will file in 2007 just like anyone else in US, reporting ALL 2007 world income. You may be able to exclude the income you earned before moving march 1, or take credit for the Cdn tax you paid. Any off-the-shelf software should be able to handle your return.

nkanwar · Post by **nkanwar** » Mon Mar 10, 2008 2:59 pm

Hi Nelson,
Thanks for the info.

What if my ties to Canada are still maintained and I'm not an emigrant? Do I get double taxed?

I find the CRA site extremely confusing when it comes to dual status. there is no definite answer.

nelsona · Post by **nelsona** » Mon Mar 10, 2008 3:41 pm

Unless those ties include a SPOUSE and a HOUSE, you are no longer Cdn resident.

If they do, then you will need to report US income on your Cdn return, and then take credit for US taxes.

Carson · Post by **Carson** » Tue Mar 11, 2008 9:42 am

Also, remember that you can only deduct your mortgage interest from the rent, not the entire mortgage payment.

It sure sounds like you have gone non-resident if your only Canadian home has been rented out. It is not optional whether or not you have left Canada. It is fact based.