SPT basis for claiming US tax residency | Filing Non Resident Zero Income return in Canada

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
vickybahl
Posts: 2
Joined: Sun May 21, 2023 3:11 am

SPT basis for claiming US tax residency | Filing Non Resident Zero Income return in Canada

Post by vickybahl »

Hi Experts!

I am a third country (Non US/Canada) living in USA on F1 from 2015 to 2019 and H1B from 2019 to current date (W2 job in USA) and a Canadian PR since 2019. I stayed in Canada temporarily for 2 months in 2020 and then did not enter Canada for entire 2021. I leased an apartment in Canada in 2022 Feb and spent close to 210 days in Canada, and 184 days in USA (40 hours at a go - I travel for few days at a stretch Mon-Tue, Thu-Fri for job in USA living in my owned condo in USA) and most of my accounts are all registered in USA. I got married in 2022 and my spouse also lives in USA. I filed for I-140 in USA in 2023.

As I pass substantial presence test in USA for 2022 and 2023. I plan to apply for a full time job in Canada in 2024 and move my permanent base to Canada in 2024. To qualify for mortgage in Canada I need to have two years of tax returns showing world income. Are there any risks of CRA audit and notice of tax assessment in filing non-residential tax return for 2022 and 2023 in Canada? 
nelsona
Posts: 18262
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: SPT basis for claiming US tax residency | Filing Non Resident Zero Income return in Canada

Post by nelsona »

You are not a resident of Canada, and will not be until some point in 2024, so any non-resident return you would file would hove no income to report, so would not satisfy any lender requirements. So don't bother filing for that purpose. zyour Cdn appartment doesn't make you CDn resident, because you outweigh your Cdn tie, with your US ones, as you describe.


You will also be considered non-resident for the purposes of a mortgage in camada, requiring a 35% downpayment, in any event, until the end of 2024.

As to providing proof of world income, your US tax returns will be sufficient.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
vickybahl
Posts: 2
Joined: Sun May 21, 2023 3:11 am

Re: SPT basis for claiming US tax residency | Filing Non Resident Zero Income return in Canada

Post by vickybahl »

Thank you @nelsona!
Post Reply