Any thoughts on my question below would be greatly appreciated.
Circumstances:
- Have been living in US for a couple years. (Canadian citizen)
- Still a Canadian tax resident, as was renting my home in Canada to a direct relative.
- Selling the house with a modest gain.
My lawyer claims I need to obtain a Certificate of Compliance / file form T2062. The form states "Use this form if you are a non-resident". My question is - am I a resident for this form's purposes, being a tax resident of Canada? Obviously I would prefer to avoid the process (and withholding before the certificate can be gotten) if I am exempt.
Thanks!
T2062 for Canadian Tax Resident
Moderator: Mark T Serbinski CA CPA
-
- Posts: 36
- Joined: Mon Apr 07, 2014 6:43 pm
While waiting for Nelsona to answer here is my answer. This part shows minunderstaning:
"- Still a Canadian tax resident, as was renting my home in Canada to a direct relative. "
You state this as if you believe that being a Canadian tax resident is a direct consequence of you renting a home. What if you stop renting for a month, then start again, will your tax residency switch to being the US but then back again to Canada?
Your tax residency status is not determined by if you are renting your property or not.
How have you managed to live in the US for a couple of years without becoming a US tax resident? Have you no US income? Are you not filing US tax returns? What is your US visa status?
If you are a US tax resident then you have no choice but to do the certificate of compliance stuff.
"- Still a Canadian tax resident, as was renting my home in Canada to a direct relative. "
You state this as if you believe that being a Canadian tax resident is a direct consequence of you renting a home. What if you stop renting for a month, then start again, will your tax residency switch to being the US but then back again to Canada?
Your tax residency status is not determined by if you are renting your property or not.
How have you managed to live in the US for a couple of years without becoming a US tax resident? Have you no US income? Are you not filing US tax returns? What is your US visa status?
If you are a US tax resident then you have no choice but to do the certificate of compliance stuff.
You ARE no longer a Cdn resident.
While renting out to relative is considered a tie, since you moved to US which has a tax treaty, you are considered as US resident.
While renting out to relative is considered a tie, since you moved to US which has a tax treaty, you are considered as US resident.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best