Hello,
My common law partner and I are considering relocating to New York later this month from Ontario Canada. We have one rental property here in Toronto and will rent out our home if we relocate. In the US my partner will be employed (company transfer) on a L1A visa and I am not be eligible for employment.
Can you please advise us on the tax implications of
1. Relocating in the middle of the year.
2. Owning rental property in Canada
3. What the tax rate in NY. Federal & State.
4. Our common law status
Thank you
Nicole Reid
Rental Properties
Moderator: Mark T Serbinski CA CPA
Be advised that you are not entitled to *move* to US, as your partner is.
US Immigration does not recognize common-law arrangements, nor do any other Federal agencies.
You can visit your partner for long stretches, but will have to maintain residence, and residential ties in canada continuously during their period of employment. you may find it advantageous to maintain your Cdn residency (and Cdn presence) in order to keep your OHIP, as you are unlikley to get any spousal medical covergae in US either (OHIP has a program to allow temporary transferees to keep OHIP, you might qulaify for that).
I suggest that your partner read over the CRA's Emigrant Guide, as well IRS Pub. 519, which deals with first-year residents. After the first year, your partner will taxation is pretty much like any other <b>single </b> US resident.
So, while it would be good for you to rent out your Cdn home (as this will break Cdn residency for tax purposes) your need to maintain a Cdn residency will make you a Cdn resident, and may make your partner one as well.
The best solution would be for you to legally marry (asuming your partner is of the opposite sex) which would entitle you to an L2 visa, <u>and would soon allow you to work at any job with an EAD</u>, or, for you to secure your own US work authorization.
<i>nelsona non grata... and non pro</i>
US Immigration does not recognize common-law arrangements, nor do any other Federal agencies.
You can visit your partner for long stretches, but will have to maintain residence, and residential ties in canada continuously during their period of employment. you may find it advantageous to maintain your Cdn residency (and Cdn presence) in order to keep your OHIP, as you are unlikley to get any spousal medical covergae in US either (OHIP has a program to allow temporary transferees to keep OHIP, you might qulaify for that).
I suggest that your partner read over the CRA's Emigrant Guide, as well IRS Pub. 519, which deals with first-year residents. After the first year, your partner will taxation is pretty much like any other <b>single </b> US resident.
So, while it would be good for you to rent out your Cdn home (as this will break Cdn residency for tax purposes) your need to maintain a Cdn residency will make you a Cdn resident, and may make your partner one as well.
The best solution would be for you to legally marry (asuming your partner is of the opposite sex) which would entitle you to an L2 visa, <u>and would soon allow you to work at any job with an EAD</u>, or, for you to secure your own US work authorization.
<i>nelsona non grata... and non pro</i>