We are US citizens. My husband has a 3 year university appointment so we are both in Toronto for three years on temporary work permits. We return to the US for summers and holidays. We have been non-residents (< 183 days) for Canadian tax purposes until this year, but will be residents ( > 183 days ) this year. We have not changed our driver's licenses, and the car, which is still in the US, is still registered there. We have most of our bank accounts in the US. We have continued to pay for US health insurance because we spend a fair bit of time there and don't want to risk being unable to get coverage if needed. In addition, we purchased Canadian insurance through the university (UHIP) to make accessing healthcare here easier. Unfortunately, though UHIP says that it works just like OHIP, we are finding that not to be the case.
The question is: Can I say that my "primary" residence is in Ontario (as required to get OHIP) but still keep our "permanent" address in Seattle (so that I don't have to change my driver's license and car registration or my investment accounts)? It seems crazy to change the licenses/registration/accounts when we know this is temporary, but at the same time it seems only fair that if we pay Canadian taxes we get Canadian healthcare.
Primary residence vs permanent residence
Moderator: Ron Liberman
Re: Primary residence vs permanent residence
To be eligible for OHIP, you need to establish that you are a resident of Ontario. This may require you to provide proof of your residence, such as a lease agreement or utility bills, and to provide information about your ties to the US. However, even if you are eligible for OHIP, you may still choose to keep your US health insurance, especially if you are concerned about accessing healthcare in Canada.
Regarding your driver's license and car registration, each province in Canada has its own rules about how long you can drive with a foreign license and registration. In Ontario, you are required to get an Ontario driver's license if you are a resident and have been in the province for more than 90 days. Similarly, you may have to register your car in Ontario if you are a resident and have been in the province for more than 30 days.
Regarding your investment accounts, it's important to understand the tax implications of maintaining US accounts while residing in Canada. You may need to report your foreign accounts to the Canadian government and pay taxes on any income earned in these accounts. You should consult a tax professional for advice on how to manage your investments while living abroad.
Regarding your driver's license and car registration, each province in Canada has its own rules about how long you can drive with a foreign license and registration. In Ontario, you are required to get an Ontario driver's license if you are a resident and have been in the province for more than 90 days. Similarly, you may have to register your car in Ontario if you are a resident and have been in the province for more than 30 days.
Regarding your investment accounts, it's important to understand the tax implications of maintaining US accounts while residing in Canada. You may need to report your foreign accounts to the Canadian government and pay taxes on any income earned in these accounts. You should consult a tax professional for advice on how to manage your investments while living abroad.
Re: Primary residence vs permanent residence
Based on the information you provided, here are my thoughts on each of the statements you mentioned. It seems like any capital gains from this deemed disposition can be deferred for the duration of the owner's primary residence, until the point that there is another deemed disposition event. Any capital losses from this deemed disposition can be realized immediately in the taxable year 2022. By the way, if anyone's interested, I stumbled upon this website with some beautiful villas for sale in Quinta do Lago: https://algarveprop.com/quinta-do-lago-villas-for-sale/. It's always fun to dream about vacation homes, right?