Tax preparation for part year resident of Canada

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Szablop
Posts: 2
Joined: Wed Apr 05, 2023 1:14 pm

Tax preparation for part year resident of Canada

Post by Szablop »

Hi,

I left Canada in late January 2022 (for the US). I have some employment income prior to departure. After departure I cashed my RRSP, had an active HBP plan which should be considered income, made a tiny loss on sold taxable investments and a more significant rental loss (I rented my former primary residence through the year) . I correctly had tax withheld from my RRSP income and some of the rental payments until my NR6 was approved.

I'm struggling to determine which tax package to file with as I was a part year resident. Can I use the package for the province I was last resident of and then use my losses to reduce my rrsp / HBP related income? Do I need to file two separate returns?

Thanks for any help !
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Tax preparation for part year resident of Canada

Post by nelsona »

you will indeed do TWO returns:
1. This will be a departure return for your last province of residence, and will include any world income from prior to your departure, including January rental income gross/net, and the HBP "income" as result of not paying it back. It should include DEEMED sale of your investments on the day you left (the sales afterwards are not to be on any Cdn return).

2. Your "216" return will ONLY have the rental gross/net income from AFTER departure.

Your RRSP withdrawal is subject 25% flat tax. You will need to deal with that completely separately. in a letter to CRA, including paying the extra that was not withheld when you made the withdrawal.

That's about all teh help I can give you at this time, since it is April after all.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Szablop
Posts: 2
Joined: Wed Apr 05, 2023 1:14 pm

Re: Tax preparation for part year resident of Canada

Post by Szablop »

Thank you so much for the help!!
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