Canadian citizen. Self-employed, with a work visa to engage freelance work in the US. Rented an apartment in the US, also maintain apartment in Canada. Working with clients in both countries and plan to split time.
A firm I spoke with told me I would be deemed a resident of Canada even if I spend more than 183 days in the US due to my ties in Canada (which goes against what I have read online regarding the 183-day rule).
Can we keep and use TFSA as normal if CRA/treaty deems us a resident of Canada? Does the US still tax the TFSA and is all the additional US paperwork (FBAR/3520/PFIC, etc) required in US filing if you split living/working time between both countries, but Canada deems you a resident of Canada based on ties?
TFSA/FBAR/PFIC if you are deemed resident of Canada, but work in both countries?
Moderator: Mark T Serbinski CA CPA
Re: TFSA/FBAR/PFIC if you are deemed resident of Canada, but work in both countries?
are you going to go with the words of the firm that you spoke with or would you be interested in hearing it from CRA about your Canadian residency by filing this form...
https://www.canada.ca/en/revenue-agency ... /nr73.html
https://www.canada.ca/en/revenue-agency ... /nr73.html
Re: TFSA/FBAR/PFIC if you are deemed resident of Canada, but work in both countries?
So, being a "deemed resident" of Canada is a very limited term, and does NOT apply to you. You are neither a student studying abroad, nor a Cdn government worker abroad, nor are you a non-resident who spends 183 days in a calendar year in Canada.
You are either a factual resident of canada (because you fail to meet the treaty definition of a US tax resident), or a deemed NON-resident of canada (if you DO meet the treaty definition). If you are a deemed non-resident, then you are treated EXACTLY like a non-resident.
This is something YOU need to decide (CRA will almost always want to keep you resident). Read the definitions in Article 5 of the treaty, and decide if your CENTRE OF VITAL INTERESTS is in Canada, or in US. Then, file and act in accord with your decision. ie. if you are not resident of Canada, inform service Canada, provincial healthcare, driver's license, etc. Don't play both sides of the fence, or you may have decisions made on your behalf that you may not like.
But you are DEFINITELY NOT a deemed resident of Canada.
You are either a factual resident of canada (because you fail to meet the treaty definition of a US tax resident), or a deemed NON-resident of canada (if you DO meet the treaty definition). If you are a deemed non-resident, then you are treated EXACTLY like a non-resident.
This is something YOU need to decide (CRA will almost always want to keep you resident). Read the definitions in Article 5 of the treaty, and decide if your CENTRE OF VITAL INTERESTS is in Canada, or in US. Then, file and act in accord with your decision. ie. if you are not resident of Canada, inform service Canada, provincial healthcare, driver's license, etc. Don't play both sides of the fence, or you may have decisions made on your behalf that you may not like.
But you are DEFINITELY NOT a deemed resident of Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 