Canadian Moved to US - Tax status in Canada ?

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Roses1410
Posts: 2
Joined: Tue Dec 06, 2022 9:39 am

Canadian Moved to US - Tax status in Canada ?

Post by Roses1410 »

Our whole family moved to US in Feb 2019. We have two kids (under 13) and both of us are working in US on TN and H1B Visa. We plan to stay in US for infinite time or forever if we get US green card.
-We still keep our home in Canada bough in 2005 and is rented.
- We bought another new home in 2021 and that is rented too.

We are current on our US taxes but haven't filed in Canada since the move. We are still confused regarding our residency status in Canada for tax purposes
My questions are as follows:

1. Whether we are resident for tax purposes i.e. if need to pay the taxes to CRA.
2. Should We will considered to be having still ties in Canada due to our two homes, Although both are rented and we will report the rental income to CRA.
3. If yes to #2 above, How do we cut ties with Canada so that we don't pay tax to CRA.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian Moved to US - Tax status in Canada ?

Post by nelsona »

1. Of course you are not resident of canada for tax purposes, you live and work in US.
2. As long as you report the rental income to Canada ona SPECIAL return, and submit taxes MONTHLY you are fine. Othrwise you are not filing correctly in Canada and MUSY fix this. You also report the income in US of course, sice you report world income on your 1040.
3. See 2, You report Cdn renatl income, but must do so in a special way.

Any particular reason you have waited almost 4 years to address this?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Roses1410
Posts: 2
Joined: Tue Dec 06, 2022 9:39 am

Re: Canadian Moved to US - Tax status in Canada ?

Post by Roses1410 »

Thank you very much for your reply Nelsona.

The reason for delay have been some family issues and a lazy accountant.

Regarding submitting the monthly taxes for rental income, Does 25% withhold comes from Gross rent Or Net rent. I understand that I can get credits for the cost of repairs and renovations from the gross rent. But Can I deduct the mortgage interest also? Mortgages for both properties is from TD Canada Trust.
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Canadian Moved to US - Tax status in Canada ?

Post by nelsona »

Until you file an NR6, and have it approved with CRA, the withholding sent monthly is 25% of gross. Then it becomes 25% of net, after which you file a 216 return at year end in order to report exact income/expenses, including mortgage interest.

Similar numbers will be used in US, except that you MUST depreciate on 1040, while CCA is optional in Canada.

Hope you are able to find a new accountant, because it is likely you face penalties for misfiling all these years.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Toyboys
Posts: 7
Joined: Mon May 29, 2023 10:31 am

Re: Canadian Moved to US - Tax status in Canada ?

Post by Toyboys »

I personally have not had to deal with it
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