TFSA contributions just before leaving Canada

[erfan1985]

I moved from CA to USA in July 2 2020 and would like to file my taxes as non-resident of Canada. I have had some TFSA contributions before I left. I am wondering how CRA will know of my moving date, so that it does not penalise me for TFSA contribution while non-resident? Anywhere during the tax filings it asks for my departure date? Or it has to be through deemed disposition tax filing? and is this latter filed separately or together with my regular tax?

[nelsona]

on your departure return (you aren't a non-resident in the year you ;eave, you are a departing resident, or emigrant), you indicate a departure date on page 1.

All software will handle this kind of return. It is the only one you will need to file in canada for 2020.

[erfan1985]

I use Turbotax. it first asks me where I was living in canada in Dec 31 2020; There are provinces listed + Non-resident + deemed resident + non-resident S.216 and s.217. I picked 'non-resident'.

and then it gives me these options to choose from:

I was a non-resident of Canada
I was a deemed non-resident of Canada
I was a deemed resident of Canada because I stayed for 183 days or more in 2020
I was a deemed resident of Canada for other reasons

and i pick the first one, correct? There is no emigrant or departing resident option.

[nelsona]

As I said, you are not a non-resident until the year after you lesve.

The question should read "where were you were living on Dec 31 OR the last day you lived in canada". So you answer with your province. Elsewhere there is a control for saying you are an emigrant. I'm sure if you type emigrant in the help search it will direct you.

[erfan1985]

Thanks it worked. So should I file deemed disposition or it s optional? I just had a stock portfolio which was in 500 to 1000 cad profile on the day I left. I dont see this deemed disposition filing on turbotax.

[nelsona]

Yes, you must file deemed disposition on all your assets held at departure, unless excluded by CRA. I'm quite sure Ttax handles this.

I don't do software troubleshooting. Contact Intuit.

[erfan1985]

It seems like they do not offer this service:
https://turbotax.community.intuit.ca/co ... /00/934165

I need to fill manually T1161 and T1243, and mail that separately to CRA if I understand correctly. That should work right?

[nelsona]

Yes. But be sure to report all gains and losses on schedule 3 with your return.

[erfan1985]

Thanks

Do I need to report the interest that I received from a Canadian bank after I left to CRA? I read that there is no tax on them for non-residents.

[nelsona]

You do not report the post-departure interest.
You would report it on your US return, if you are filing a 1040, but not a 1040NR.

[erfan1985]

So I have calculated my Stock profile gain/loss on the day I left and my portfolio was close to 5000$ in loss. There were no gain. Do I still need to file T1161 and T1243? This trading account is the only thing I had that meet the deemed disposition criteria.

[nelsona]

Yes, and Yes (there are penalties for not filing). and you still have to report the loss on your schedule 3 for future

[erfan1985]

nelsona wrote:
> Yes. But be sure to report all gains and losses on schedule 3 with your
> return.
Does this mean schedule 3 of CRA, IRS, or both?
Also I read on form T1243 "Attach your Form T1243 and Schedule 3 to your tax return". Should I print the schedule 3 from Trubotax and mail that too to CRA?

[nelsona]

Your schedule 3 for CRA will already be on your return when you submit it. You will be sending only any missing forms.

Deemed dispositions don't count for IRS.