cross boundary tax situation

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
fromEast
Posts: 1
Joined: Sun Jun 05, 2005 5:24 pm

cross boundary tax situation

Post by fromEast »

This year I will have a very complex tax situation. Shortly speaking:

My wife and me are both permanent residents of Canada who worked in US on H-1. I moved to Canada early this year to settle down for our family( we also have a kid) while my wife will come up to join me soon after she finish some project there.

For the year 2005, we will need to file tax return in both countries. Right now I need some advice: should we find an account in Canada or US, or both? Should I be considered Canadian resident while my wife be considered a US resident, or she is also a Canadian resident? Do we file seperately or combined?

To make things complex, I have to consider the following factors: we might have some capital gain in selling our primary residence in US(after 2 years), the mortgage interest portion and property tax is considered tax deductible in US, and we have income in US as well as Canada. What is our best option?

Thank you very much in advance.
Post Reply