Canadian moving to the US

[einstein]

Firstly, I'd like to thank you for the valuable information you provide and helping many folks (like myself) gain a better understanding of the taxes regulations that apply to both countries !

Here is my situation:

I am planning to move to the US for a job on a TN visa, we own a house in Vancouver, my wife and daughter will remain in Vancouver for at least 9 mths.

1) What taxes will apply to the income I earn in the US, and if I have to pay CDN taxes what should I set aside?

2) What is the most tax beneficial way for us to file our taxes?

3) What should I be doing to ensure I reduce my tax exposure.

Thanks!

[nelsona]

you will be considered a Cdn resident untlil your wife moves UNLESS you do the following 2 things:
1. Establish a full functioning home in US (not temp housing) AND
2) you avoid regular visits back to canada and instead have family come visit you.

If you satisfy 1 and 2, you will become demmed non-resident, avoiding Cdn tax on US income.

Otherwise your departure date will be when family joins you permanently.

your us filing will depend more on when you start work then any other factor.

[einstein]

Thanks for the quick response and for the info'!!:D

1) After my family joins me, do we need to sell our house (jointly owned by my wife & me) in Canada? Or can we rent it and pay mortgage through rental income?

2) How shd I handle bank accounts / credit cards once I move to the US?

thanks

[nelsona]

1, you can do what you wish. However if you sell home more than 1 year after leaving canada, or if you rent it out, you will begin to build up taxable capital gains on its value.
2. Nothing neeed to be done about this. Non-residents can keep Cdn bank accounts and credit card.