Canadian Summer home - Income taxes?

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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sbryant31
Posts: 1
Joined: Sat Jun 05, 2021 2:47 pm

Canadian Summer home - Income taxes?

Post by sbryant31 »

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.
bluesky
Posts: 31
Joined: Sun Mar 29, 2020 11:01 am

Re: Canadian Summer home - Income taxes?

Post by bluesky »

You are maintaining strong US ties and spending less than 6 month in Canada - no you would not owe Canadian taxes.
nelsona
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Location: Nowhere, man

Re: Canadian Summer home - Income taxes?

Post by nelsona »

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 :D
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
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Re: Canadian Summer home - Income taxes?

Post by nelsona »

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 :D
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