Residency question

Namor · Post by **Namor** » Mon Mar 17, 2008 1:20 pm

I believe CRA gave me some wrong information. I am in the US since Sep 07 and CRA told me I need to file as resident until my departure. From what I read on the posts, it seems that I can choose to be a non-resident for the entire year. Is that correct? Any help is appreciated.

nelsona · Post by **nelsona** » Tue Mar 18, 2008 5:43 am

Please read the CRA emigrant guide. You file as a deparing resident.

You are not non-resident for 2007.

What you can choose is to file IN US as a residnt for the whole year. But this has no effect on your Cdn return,

one_day_at_a_time · Post by **one_day_at_a_time** » Tue Mar 18, 2008 11:20 am

When you are saying the author of this post is NOT a non-resident for 2007, then the following info on the CRA website applies only to years following the departing year??

[quote][b]After you leave Canada
After you leave Canada, you're a non-resident for tax purposes provided you have severed residential ties with Canada. As a non-resident, you pay tax on income you receive from sources in Canada.

This applies in the year you leave Canada and for each year afterwards, provided you remain a non-resident for tax purposes.
The type of tax you pay and the requirement to file a Canadian tax return depend on the type of Canadian income you receive[/b][/quote]

nelsona · Post by **nelsona** » Tue Mar 18, 2008 2:11 pm

I'll be more precise.

In the year one BECOMES a non-resident, one does NOT file a non-resident return. They file a departure return based on their last province of residence, with a departure date.

Again, this is clear iun the emigrant guide.

jay · Post by **jay** » Thu Mar 20, 2008 1:13 pm

Do you mean for this case he is deemed resident? In UFIle, there are only 2 choice: (deemed resident / non resident), thanks.

nelsona · Post by **nelsona** » Thu Mar 20, 2008 2:16 pm

An emigrant files RESIDENT return, but adds a departure date. He puts his last province of residnce on the return.
This has been covered before.

Which is why I repeatedly say that a person is NOT a non-resident for the year he departs. he BECOMES a non-residnt during that year.

jay · Post by **jay** » Thu Mar 20, 2008 10:09 pm

nelson, for my case we file 1040 jointly, and file Canada tax. as a departuring resident. My wife's departure is 03/2007 and mine is 10/2007. Following A, B choice which is correct?
A. Both of us don't need to report US income to Canada.
B. I don't have to report US income, but my wife has to report US income from March to September

Thanks a lot!

nelsona · Post by **nelsona** » Fri Mar 21, 2008 6:11 am

A -- But only If she truly became a treaty non-resident in March (ie. she bought/rented a home in US, and only visited you once or twice) then herr deparure date is march.

If she lived in temp housing and went up to canada every weekend, then her departure date matches yours, and she would need to report her world earnings until October.

jay · Post by **jay** » Fri Mar 21, 2008 8:52 am

Thanks nelona! So when I file Canada tax, I don't need to fill any foreign income form, but have to attach a note to my tax return stating my net world income (in Canadian dollars) for the part of the year that I were not a resident of Canada. Correct?

nelsona · Post by **nelsona** » Fri Mar 21, 2008 9:42 am

There is a statement A, but it is not mandatory if you are not claiming any extta deductions.

hp · Post by hp » Mon Mar 24, 2008 12:56 am

nelsona, I have similar situation. If I choose A to only report Canadian income to CRA, do I have to get assessment from CRA first? I mean how CRA agree on my choice? Everything is just based on my own choice? Thanks in advance.

nelsona · Post by **nelsona** » Mon Mar 24, 2008 4:45 am

You determine your residency status. If CRA disagrees with, they will let you know. Do NOT submit NR73 unless asked for.