Timing of non-resident status

[bwafusion]

We are dual US/Canada citizens currently living in Canada (for past 20 years) and planning to sell our house in September and return to the US (permanently) in January 2023.

I have a large capital gain realized in 2020 for which I am claiming a reserve over 3 years (2020, 2021, and 2022). My understanding is that I will not be able to claim the reserve in 2022 unless I am a resident in Canada at the end of that tax year.

After selling our house in September, we want to go to the US for a few months to “try out” a place (renting) where we might want to live with the understanding that, in the end, we might return to Canada and live somewhere other than our current city. But we might equally find a place we like in the US and not return to Canada.

So, here is the dilemma. I want to be sure that we are not deemed “non-resident” in Canada until January 2023 so I can claim the 2022 capital reserve. Assuming that when we “visit” the US from Sept to Dec 2022 and we keep substantial personal ties in Canada until January 2023 (such as bank accounts, doctor relationships, etc. to maintain a “closer connection”) would it then be reasonable upon filing my Canada 2023 tax return, to declare the date of emigration as January 2023 (even though we left Canada in Sept 2022 to “visit” the US)?

I understand that CRA Form NR73 is “optional”. Wondering whether or not I should use this Form to declare the “Date of Departure” as January 2023 or just ignore that Form and indicate on my 2023 T1 Tax Return the date of January 2023. There are a lot of probing questions on Form NR73 and filling it out might just muddy the waters.

Thanks for your guidance on this!

[nelsona]

Without keeping a dwelling in canada after september, Even simply having the dwelling would barely be enough.

An NR73, if filed truthfully, would confirm that you are no longer resident from September.