are parents' dwelling enough of a residential tie?

hyperbling · Post by **hyperbling** » Sun Jan 30, 2011 5:43 pm

hi,

there's one particular clause i'm wondering about when determining canadian non-residency.

i'll be working and living in the US under TN status, but my parents have a home in canada, and i'll able to go back and live there any time year-round (my room's still mine, etc.).

is this considered a strong enough residential tie to remain a canadian resident for tax purposes? thanks!

nelsona · Post by **nelsona** » Sun Jan 30, 2011 8:54 pm

No, it is not.

nelsona · Post by **nelsona** » Sun Jan 30, 2011 8:55 pm

Besides, you are married.

hyperbling · Post by **hyperbling** » Mon Jan 31, 2011 12:12 am

lol, actually we're engaged, but yes you're right :P

i'm just trying to wrap my head around the rules because a lot of it appears to be based on interpretation. in particular, under the clause "Permanence and Purpose of Stay Abroad", it states that you can remain a canadian resident if you're away for less than 2 years, and made no attempt to severe residential ties.

however, i've also seen you give advice that the moment you leave canada for work the CRA will "force" you into non-residency....so this is all a little confusing to me.

i have an interest in remaining a canadian resident if possible because it would be far less paperwork than moving my tax home twice, because i do intend to come back to canada after working in the US for 2-3 years.

nelsona · Post by **nelsona** » Mon Jan 31, 2011 6:20 am

The treaty overrides CRA regulation. Your centre of vital interest will be US, thus, once you are living and working in US, you are Cdn non-resident regardless of how many ties you have in canada.

The tax you will be saving far outweighs any convenience, and, as you have noted, CRA will consider you to have left anyways.