Hi, I would love any advice on my situation. I attempted to search the board but did not find this case.
I am an American who lives in Florida. I am also technically a Canadian dual citizen and hope to eventually move to Canada completely. However, for now, I want to buy a second home in Canada and spend ~5 months per year there (Ontario or Alberta.)
I am an online business owner and my business is based in Florida. My clients are all based in the USA as well as all of my income. I am hoping I would be considered a complete non resident for tax purposes by Canada but I have heard that there is a gray area. As long as my income and business reside in the USA, would I be potentially liable to pay any Canadian income taxes? Let's say during my 5 months per year I spend in Canada I do a bit of work for my business remotely. Would this technically make me liable to pay canadian taxes?
Appreciate your help.
Canadian Summer home - Income taxes?
Moderator: Mark T Serbinski CA CPA
Re: Canadian Summer home - Income taxes?
You are maintaining strong US ties and spending less than 6 month in Canada - no you would not owe Canadian taxes.
Re: Canadian Summer home - Income taxes?
Even if spending more than 6 months, since you have those strong ties, you would not be either factual or deemed resident of Canada. the 183 day limit does not apply to treaty countries with a Residency article, like US/Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Canadian Summer home - Income taxes?
You would really need to be working for those 6 months before any Cdn tax liability would kick in. Without Cdn clients, or a business premise, occasional work done in Canada would not create a permanent establishment.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing