My wife and I have been living and working in the US for 2 1/2 years with an L1/L2 Visa and are returning back to Canada.
My Wife (L1) visa is starting a new job in Vancouver on January 16. I will continue to work in the US until the end of January and return for February. We will move back into our house in Vancouver that we rented out while in the US. She will livve for a few weeks with friends.
1.When does our residence start in Canada. I assume it would be for February 1, but I am confused as she would be working and paying taxes in Canada prior to that date.
2. I will continue to work for my current US employer and trying to determine whether to work for them on contract, or as an employee. If I choose to work on contract (at a higher rate) would I have to charge the US company GST?
thanks
mabajada
L1/L2 moving back to Canada
Moderator: Mark T Serbinski CA CPA
To simplify, I would simply state that you return date be February 1 for both of you, since that is when you will take back your house.
It doesn't matter for her, as her CDn wagaes would be subject to Cdn/BC tax in any event. It save you the trouble of having to repiort you january earning on your "arrival" return in 2006.
Be sure to consult the "Newcomers" tax guide from CRA when you file your 2006 taxes.
Remember that any US payments you receive after Feb 1 will be taxable in canada (severance, vacation pay, 401(K) withdrawals etc) so you might want to iron out these details before US quitting day.
2. As a contractor servicing a US comapny, you would not charge them GST. Your US contract however would count towards the GST thresshhold in determining whjether or not you should register for GST number. It would probably make sense for you to register, and recoup all GST costs related to your work. You would then have to charge GST for any Cdn clients you had.
<i>nelsona non grata... and non pro</i>
It doesn't matter for her, as her CDn wagaes would be subject to Cdn/BC tax in any event. It save you the trouble of having to repiort you january earning on your "arrival" return in 2006.
Be sure to consult the "Newcomers" tax guide from CRA when you file your 2006 taxes.
Remember that any US payments you receive after Feb 1 will be taxable in canada (severance, vacation pay, 401(K) withdrawals etc) so you might want to iron out these details before US quitting day.
2. As a contractor servicing a US comapny, you would not charge them GST. Your US contract however would count towards the GST thresshhold in determining whjether or not you should register for GST number. It would probably make sense for you to register, and recoup all GST costs related to your work. You would then have to charge GST for any Cdn clients you had.
<i>nelsona non grata... and non pro</i>
Thanks
We are cashing in her stock options before she leaves so that they will be taxed in the US.
We have US stocks from employee stock purchase plans and we will bring them back to Canada. As I understand, we would not be liable for and capital gains as we are no longer US residents. From a Canadian tax perspective there cost basis set on the day we become Canadian residents. Is there a minimum time that we should hold them?
mabajada
We are cashing in her stock options before she leaves so that they will be taxed in the US.
We have US stocks from employee stock purchase plans and we will bring them back to Canada. As I understand, we would not be liable for and capital gains as we are no longer US residents. From a Canadian tax perspective there cost basis set on the day we become Canadian residents. Is there a minimum time that we should hold them?
mabajada