Canadian Citizens living in US, but working in Canada

[Scooter9917]

I’ve read some interesting posts on this forums, I am hoping to get some information on my situation.

Background – I own a house in Alberta, I am a contractor that works shift work (~230+ days/year). My wife works part time in the hospital. We recently built a house in Montana and would like to move down there full time. My wife would not work and I would commute to work back in Alberta.

My biggest concern is income tax; can I sell my Alberta home and not have a permanent address in Canada and still get tax credit since my “Tax homeâ€￾ would still be where I work? Would I need to rent a place here still in Alberta for a permanent resident, or should I rent out my house instead of selling it? We would still keep our bank accounts and RRSP’s here in Alberta as we would move back one day.

Since the wife would not have any income but would spend +90% of the year in the US would there be any tax issues? Since here in Canada we file our tax form together (married) what would change, will she have to file a Canadian tax form if she no longer has residence her?

Also if we decide to sell the house and move back to Alberta one day (and maybe make a profit) what kind of taxes would we be looking at?

If there are any other issues or solutions that you guys can shed some light on I would sure appreciate it.

Thanks,
Scooter

[nelsona]

Actually, your first concern will be immigration issues, not tax, as you MUST keep a fully equipped and fully available HOME in Canada, in order to even attempt waht you are proposing. You will be asked this each time you cross the border.

Put simply, you can't simply move to US without an active work status in US, or a Green card, which -- unles you are planning to ditch the wife for an american woman - can only come thru US employment sponsorship. You can stay 6 months at a stretch as a tourist, but even during those six months you must have a Cdn domicile.

So, you won't be becoming a US tax resident under these conditions, so you might need to re-think your plans. The best you could do is have your cottage in Montana, just like millions of snowbirds do in Florida, Arizona, Mexico, Caribbean, etc.

And isnce time spent in US as a tourist is spefically NOT counted towards US tax residency, you would never break Cdn tax residency, and so there is little point discussing how much you would have to sell to do so. - -you can't until you get a LEGAL job in US.

[Scooter9917]

Ditch the wife eh?????? That might cost me the house!!

Ok so if I keep a full home in Alberta, I can only spend 6 months in the states at a time as a tourist? How long to I have to come back to CAN for? Or is it 6 months in one calander year?

If the wife is able to get a job on a VISA in the hospital, and move down there can I get a green card as well and still work in CAN?

[nelsona]

Let's be clear, here: when you cross the border you are asking permission to enter on B2 tourist status, and that is implicitly a maximum of six months. that is EACH time you enter.

So, from a US immig point of view,m you can come in for 6 months, leave for 1 dsay, and go back for another siux months.

The notion that many Cdns have about six-months-here, six-months-there has nothing to do with US immigration and everything to do with keeping provincial healthcare. that is why people 'have to' come back for six months. If that doesn't matter to you, you can stay 364 days a year in US (provided you keep a residence in canada and leave every 6 months). Technically, you could even file an I-539 and extend your tourist status for another 6 months without leaving US (but it would certainly be cheapr, easier and faster just to drive to the border and back).

Now, getting to the issue of WORKING in US. Certainly either you or your wife could get a temporary work visa (TN or H1) to work and live in the US for 3 years at a time. This is for professionals however (you didn't say what your wife does).

This would not necessarily lead to a green card unless the employer would sponsor her for PERMANENT status (ie. GC). If they did, then both of you would eventually (5 or 6 years later) get GCs. only at the last state however would the non-sonsored spouse be legally able to work.

So, unless both of you qualify to get professional work documents, one of you will be sitting in that cottage for a long time.


You can always work in canada whereever you live, since you are aCdn citizen. Once you get your green card however, you would be expected to 'sleep' in the US.