Factual resident vs deemed non-resident

[rao_manoj2004]

Hi, If Canadian citizen working and staying in US on green card (staying more than 183 days .. no commute) and have strong ties to Canada (Spouse, kids, Primary residence, rental properties, bank account, credit cards), now under US-Canada tax treaty, will be considered factuall resident OR deemed non-resident of Canada.

- If factual resident of Canada then will he be tax resident of US.
- if deemed non-resident of Canada then what happens to rental income in Canada.

Thanks in advance for your help and advise.

Manoj

[lilylam]

File Section 216 for deemed non-resident rental income.

[rao_manoj2004]

Thanks Lilylam, but what about my strong ties to Canada. Does US-Canada tax treaty override strong ties to Canada?

[nelsona]

"Deemed" means by treaty definition.

From what you describe you are NOT a deemed non-resident of Canada, because although you meet the definition of resident for both countries (house and spouse in Canada, GC for US), it seems clear by the treaty definition that your centre of vital interests is in Canada.

So you file your Cdn taxes as a resident, reporting world income.

Your GC forces you to also file 1040 reporting world income, not because you are resident, but because you have a GC which you want to keep at this point.

This is just like what US citizens living in Canada always must do.