Regarding my residency status

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
perfusionist
Posts: 2
Joined: Sun May 24, 2020 10:52 am

Regarding my residency status

Post by perfusionist » Sun May 24, 2020 10:59 am

Hi Guys

Hope everyone is doing fine.

I am a Canadian citizen who moved to the US on Feb 1st 2019 for work on a H1B Visa. I have a T4 from my canadian employer for the first month of 2019. I also have a rental property in Canada (Edmonton). I am still in the US and planning to work in the US for the next 3 years atleast.

My questions:

1. Am I considered a non-resident ? Just because I have a rental property, does that mean I am holding significant ties? I do not have any other family or spouse or any other ties in Canada.

2. My tenants in Canada are not withholding any tax so far, so should I file as "non resident" with the 216 form? If not, should I just say I am a non-resident if you guys think I am a non- resident?

3. Should I report my US income (W2) to Canada ? If yes, what amounts should be reported? I was trying to use turbo tax, but it gets confusing. Not sure if I should report gross or net income etc?

Thanks in advance.

nelsona
Posts: 16417
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Regarding my residency status

Post by nelsona » Sun May 24, 2020 2:39 pm

1. You are non-resident of Canada. make sure you are following the rules for non-resident reantal income (MONtHLY withholding, etc).

2. You need to have someone (not usually the tenant) remit withholding to CRA.

3. No, You file a departure retrun for 2019 with Feb 1 departure date.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

perfusionist
Posts: 2
Joined: Sun May 24, 2020 10:52 am

Re: Regarding my residency status

Post by perfusionist » Sun May 24, 2020 5:25 pm

Thank you. I havn't done the monthly withholding so far as I didnt know that. Is it possible to back date that now? Any other options?

nelsona
Posts: 16417
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Regarding my residency status

Post by nelsona » Sun May 24, 2020 6:38 pm

You will have to file a 216 return for 2019, along with your departure return. CRA wuill asses the penalty, so get moving, and also start the withholding now going forward.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

Post Reply