Residency dilemma

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Smos
Posts: 9
Joined: Wed May 13, 2020 8:01 pm

Residency dilemma

Post by Smos »

Hi,
I moved to US in June 2019 on TN visa. Spouse and child moved in Aug 2019.
We have a rental property that was primary residence and RRSPs in Canada.
We had a consultation with a cross-border accountant today and he mentioned that if not sure we are staying in US long term ( which we are not sure). We should file as Canadian residents in Canada and I do a 1040NR in US.
The tax implications of this seems a lot as Canada taxes are much higher. His reasoning was most about RRSP’s being useless if non-residents.
My questions are :
1. Does this seem like a good option to stay as Canadian residents for full 2019?
2. For 2020 can we still file a departure tax although we exited Canada in 2019?

Thank you.
nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Residency dilemma

Post by nelsona »

Bad advice. You left in June, that is your departure.
You cannot fake a date in 2020.

Intent is no longer part of the residency test. You left. when you v=come back, you came back. Between that you are non-resident.

You do need to be having rent tax withheld monthly so should start that NOW. Poor advice not withstanding.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Smos
Posts: 9
Joined: Wed May 13, 2020 8:01 pm

Re: Residency dilemma

Post by Smos »

Thanks Nelsona,
We are having rent tax withheld monthly by an agent.
Can you please let me know if possible to file a dual status in US for me and my wife does not file in US since she had no US income? We both will file dep tax in Canada.
Thanks again.
nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Residency dilemma

Post by nelsona »

Yes. How you file in US is not dependent on how you file in canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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