TN as relates to Fine Art

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Kroeran
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Joined: Sun Sep 04, 2011 9:54 pm

TN as relates to Fine Art

Post by Kroeran »

If I retain a house in Canada and have a second home in Florida, but take a TN in US which puts me over the IRS six month threshold, am I forced to exit and deem dispose Fine Art still in Canada?

Is there a status where I am filing US on US income but filing Canada on world income with TN?
nelsona
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Post by nelsona »

Once you live and work in US, and meet Substantial presence test, CRA has the right to DEEM you non-resident. Their choice. You can always deem yourself non-resident in this case to avoid any surprise.

Once you pass 183 days in a calendar year, and becuase you WORK in US, it would be impossible for you to argue to IRS that you have closer ties in canada than US.

Only long-term tourists or students can successfully argue this, either because their ties in Canada re more than US (yours are not if you work), or US specifically does not recognize your US residency (students).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Kroeran
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Joined: Sun Sep 04, 2011 9:54 pm

Post by Kroeran »

Is there something about recording the gain with cra on art and paying when the art is actually sold?

Isn't there a special US tax rate on fine art capital gains?
nelsona
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Post by nelsona »

Deemed disposition is eaxactly that: canada pretends you sold it, and then you pay whatever tax, and that is it.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Kroeran
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Post by Kroeran »

What if the art has been passed down several generations without any paperwork or capital gains paid when inherited...under Canada rules?
nelsona
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Post by nelsona »

It should not have been, but your spouse is not responsible for past non-payments. she is resposnsible for the gains from the time she became owner until she deprts canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
nelsona
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Post by nelsona »

Only transfers to spouse would require cap gains paid of the previous owners gain as well as her own.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Kroeran
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Post by Kroeran »

Would an appraiser be able to establish value 7 years ago? Is that how that works?
nelsona
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Post by nelsona »

That is about all that you have to go on. What were you insuring it for?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Kroeran
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Joined: Sun Sep 04, 2011 9:54 pm

Post by Kroeran »

Oh I see, we might use the insurance value, which was a guess at the time, as our justification.
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