Hello,
Here is my situation:
My wife & I are both canadians, I work in the USA on H1 visa since 2003, my wife left her work to join me in January of this year. My wife owns a vacant house in Canada that she is keeping for occasional use. I am concerned that the Canadian Government would consider me as having strong ties to Canada, and therfore I may have to pay Canadian Taxes for 2005.
I truly appreciate your comments.
Best
Vacant house in Canada
Moderator: Mark T Serbinski CA CPA
This is a tie.
However, given that she now LIVES with you in US, your centre of vital interests is in US, so any US income either of you would earn would be taxed in US only.
The empty house is akin to a cottage.
Technically, CRA could view your wife (and thus you) as Deemed Non-Residents (DNR), which would require that you report world income, but allow you to deduct US-sourced income.
It would be simpler to just file as true non-residents, as of Jan 2005 (you are both Cdn tax residents until SHE left), filing with a departure date of sometime in January 2005, next spring.
If CRA decided to contest this, you can fall back on the DNR status, as long as you can document that she joined you for good in jan 2005.
<i>nelsona non grata... and non pro</i>
However, given that she now LIVES with you in US, your centre of vital interests is in US, so any US income either of you would earn would be taxed in US only.
The empty house is akin to a cottage.
Technically, CRA could view your wife (and thus you) as Deemed Non-Residents (DNR), which would require that you report world income, but allow you to deduct US-sourced income.
It would be simpler to just file as true non-residents, as of Jan 2005 (you are both Cdn tax residents until SHE left), filing with a departure date of sometime in January 2005, next spring.
If CRA decided to contest this, you can fall back on the DNR status, as long as you can document that she joined you for good in jan 2005.
<i>nelsona non grata... and non pro</i>