Hi, I am Canadian citizen and had sent letter to CRA in Oct 2024 to determine my tax status in Canada. I live and work in US while my wife and kids live in Canada. CRA replied last month that Tax status in Canada is non-resident back dated (March 2022).
I had paid taxes on my US income to Canada in 2022 and 2023.
The only income I have from Canada is $20K as rental income whereas my US income is around 200K.
Is it wise to refile for 2022 and 2023 and claim refund?
CRA determination as non-resident backdated
Moderator: Mark T Serbinski CA CPA
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Re: CRA determination as non-resident backdated
It depends on what you reported on your Cdn return for those years, but, if you are entitled to a refund, then by all means amend those returns.
Just be aware that the manner in which you report rental income is different when a non-resident, so you might come up against some interst and penalties for not having followed those specific rules.
Also, you may have to review your US filings (since you would be resident of US.
Just be aware that the manner in which you report rental income is different when a non-resident, so you might come up against some interst and penalties for not having followed those specific rules.
Also, you may have to review your US filings (since you would be resident of US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 

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- Posts: 16
- Joined: Sat Feb 12, 2022 11:50 am
Re: CRA determination as non-resident backdated
I was tax resident for both Canada/US. I am planning to only refile Canada. US is still fine as I reported all Canadian rental income in it.
Yes, as non-resident I was suppose to deposit 25% of gross income. There would be some penality but looking at tax saved on US income, it is worth paying those penalty.
Hope it would be right decision. Only thing which surprised me was that I have strong ties to Canada (wife and kids and few rentals) I was tagged non-resident as I work and live in US.
Yes, as non-resident I was suppose to deposit 25% of gross income. There would be some penality but looking at tax saved on US income, it is worth paying those penalty.
Hope it would be right decision. Only thing which surprised me was that I have strong ties to Canada (wife and kids and few rentals) I was tagged non-resident as I work and live in US.
Re: CRA determination as non-resident backdated
As I have pointed out MANY times here, it all depends on how regularly you visit your family vs if they visit you instead. I belive that is one of the questions they would ask on for NR72.
Your rentals are really meaningless in terms of ties to Canada.
Just one other thing to take care with is making sure you report any deemed dispositions bases on what you owned in March 2022.
You may have to amend your US returns to adjust any foreign tax credits you may have taken for that Cdn-sourced rental income, as your tax rate on that income will definitely change.
Your rentals are really meaningless in terms of ties to Canada.
Just one other thing to take care with is making sure you report any deemed dispositions bases on what you owned in March 2022.
You may have to amend your US returns to adjust any foreign tax credits you may have taken for that Cdn-sourced rental income, as your tax rate on that income will definitely change.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
