Canadian moved to USA while waiting for green card - Consular Processing
I'm Canadian working in USA on H1B visa. My Green Card Application status,
I-140 approved
Priority Date: October 2005
Cansular Processing
I've been commuting to work in U.S. for 7 years from Windsor Canada. I finally moved to USA in August 2009. I have H1B visa and my family have H4. Now I have some questions,
- Is it going to affect my Green Card application because I moved in to USA while I waiting for Priority Date on Consular Processing?
- Do I have to keep residential status in Canada because of Consulor Processing?
- Do I have to file tax return for Canada?
What is your recommedation on my situation?
Thanks a lot for your time and info.
Eiyou
Tax return for Canadian moved to USA - Consulor Processing
Moderator: Mark T Serbinski CA CPA
- Is it going to affect my Green Card application because I moved in to USA while I waiting for Priority Date on Consular Processing?
No.
- Do I have to keep residential status in Canada because of Consulor Processing?
No.
- Do I have to file tax return for Canada?
Yes, for 2009, you will file a departure return, following the instructions in the Emigrants guide from CRA.
What is your recommedation on my situation?
You should file a full-year 1040 in US for 2009, joint with your spouse, if you aren't already doing so.
No.
- Do I have to keep residential status in Canada because of Consulor Processing?
No.
- Do I have to file tax return for Canada?
Yes, for 2009, you will file a departure return, following the instructions in the Emigrants guide from CRA.
What is your recommedation on my situation?
You should file a full-year 1040 in US for 2009, joint with your spouse, if you aren't already doing so.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Thanks so much for your quick reply.
- Why I asked whether I have to keep my residencial status in Canada because somebody once reminded me nicely that, "I have to keep resident status since I elected Consular Processing in Montreal which is basically for Green Card application for Canadian resident. If I lose the resident status in Canada, it may have trouble during later stages or interview".
So these statements are NOT true!?
- I'm still trying to sell my house in Canada. What should I do to avoid paying unnecessary tax when I sell my hosue if I file departure tax return?
- Can I file departure tax return while my wife files normal return to keep her residential staus in Canada? She has about $16000 income for 2009. She is also owner of our house. So if she keeps her residential status in Canada, is it going to be easier to deal with tax when we sell our house?
Your valuable information and expertise are greatly appreciated.
Thank you
-
- Why I asked whether I have to keep my residencial status in Canada because somebody once reminded me nicely that, "I have to keep resident status since I elected Consular Processing in Montreal which is basically for Green Card application for Canadian resident. If I lose the resident status in Canada, it may have trouble during later stages or interview".
So these statements are NOT true!?
- I'm still trying to sell my house in Canada. What should I do to avoid paying unnecessary tax when I sell my hosue if I file departure tax return?
- Can I file departure tax return while my wife files normal return to keep her residential staus in Canada? She has about $16000 income for 2009. She is also owner of our house. So if she keeps her residential status in Canada, is it going to be easier to deal with tax when we sell our house?
Your valuable information and expertise are greatly appreciated.
Thank you
-
Eiyou
Your H1 status allows for you to be in US, and not maintain foreign residency.
As long as you sell your house within a year of leaving you will not pay any capital gains atx. It would be wise for you to have a fair marlet value appraisal of it based on the tiome you left, for future calculations.
I would not have spouse pretend to live in canada just to avoid having to file 1 simple piece of paper. There will be no tax. You both moved, let it be.
As long as you sell your house within a year of leaving you will not pay any capital gains atx. It would be wise for you to have a fair marlet value appraisal of it based on the tiome you left, for future calculations.
I would not have spouse pretend to live in canada just to avoid having to file 1 simple piece of paper. There will be no tax. You both moved, let it be.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I'd also like to verify with you another statement from somebody that saying, "I do not need to pay any capital gain tax on my house even I sell after a year from departure if the house WAS my primary home".
So this statement is NOT true either?!
If I file non-resident tax return every year with zero income in Canada from year 2010, are there any benefits doing this? For example, does it help on such as Old Age Benefits etc. if I come back to Canada after some years or retirement...
Thanks a lot
So this statement is NOT true either?!
If I file non-resident tax return every year with zero income in Canada from year 2010, are there any benefits doing this? For example, does it help on such as Old Age Benefits etc. if I come back to Canada after some years or retirement...
Thanks a lot
Eiyou
If you sell what was your principal residence within one year there is no cap gains.
If you sell after a year the cap gains would be the lesser of the change since you left, or a factor of the overall gains equal to (Y-R-1)/Y
Where R is the years it was your principal residence, and Y is the total years you owned it.
So, if you sold 2 years after moving and you owned it a total of 10 years (principal residence for 8), and made 50K on the sale, you cap gains would be
50K * (10 - 8 - 1)/10 = 50K * 1/10 = 5K.
There is no point advantage or anything in filinga non-residnt return unless you have Cd nsource income that requires it (ie. Cdn wages, busines income, real estate, etc).
You are now a non-resident.
If you sell after a year the cap gains would be the lesser of the change since you left, or a factor of the overall gains equal to (Y-R-1)/Y
Where R is the years it was your principal residence, and Y is the total years you owned it.
So, if you sold 2 years after moving and you owned it a total of 10 years (principal residence for 8), and made 50K on the sale, you cap gains would be
50K * (10 - 8 - 1)/10 = 50K * 1/10 = 5K.
There is no point advantage or anything in filinga non-residnt return unless you have Cd nsource income that requires it (ie. Cdn wages, busines income, real estate, etc).
You are now a non-resident.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing