CAN-US Taxation

NoAgent73 · Post by **NoAgent73** » Sun Jan 28, 2024 5:56 pm

Hi Everyone! I hope you are all doing well. I was hoping if anyone can point me to the right direction regarding my inquiry.
I have a potential opportunity to work in the US via intracompany transfer (Ontario to NJ).
started researching the potential tax implications on this forum and other avenues on the internet.
I was wondering if someone can help me answer my questions:
1. Current Residence Concern
- I understand that I need to show that I need to show significant evidence that I am not a Canadian resident to not be taxed by CRA. I currently own a condo with a mortgage. If I sell the condo before leaving Canada, am I correct to assume that I wont be taxed with the capital gains due to it be my primary residence?
- What if I keep it as a rental? I know CRA will take 25% of the gross rental income. Is this CRA taxation reported to the IRS so that they will not tax it again?

2. TFSA Woes
- I understand that I can leave this open and CRA will not tax me as long as I do not add more contribution. I currently have a TFSA with a GIC maturing at the end of the year. I asked the bank if it can be sold but they mentioned that I cannot sell it until maturity. My question is: if I started working in the US say June of this year and I get the interest from the GIC by Dec, will I the IRS tax a prorated capital gain (i.e. interest gained from Jun to Dec)? Or is it possible to keep the TFSA open until the end of 2024 without the IRS touching the capital gain? If i keep it open until end of 2024, is my US income from Jun to Dec of 24 taxed by CRA or IRS? I am trying to minimize the tax exposure. If someone can advise. The GIC interest gain is around 4K CAD.

3. Defined Contribution Plan
- At my workplace, we have a DCPP as the retirement savings plan instead of RRSP. From my reading, is it correct to assume that this will change as LIRA? As such, any capital gain will be taxed by the IRS at the time of withdrawal at retirment?
- This contains TD mutual funds. Are the mutual funds ok in terms of PFIC or should I change the investment to a money market?

Thanks so much!