In order to balance my income tax, I did not claim all my within-US moving expenses in 2007 from my relocation company.
When file Canada return, can I still deduct all the expensed I paid in 2007 ? I think I can, because next year I will get more income from reimbursement but no moving expense to deduct.
The tricky part is that next year I may not file Canada Tax anymore as I have notified them that I moved out on Jan 2nd,2008. How does CRA handle case like this?
Thanks.
Moving expenses paid in 2007 - get reimbursement in 2008 -
Moderator: Mark T Serbinski CA CPA
You aren't allowed tp 'balance' your tax. If you have sufficient income from after your move, you must deduct it in the year the expense was incurred.
And I would NOT agree that moves within US constitute eligible expenses in Canada, since you are still resident there.
And I would NOT agree that moves within US constitute eligible expenses in Canada, since you are still resident there.
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
Nelson,
Thanks for the reply. I checked the following link
http://www.cra-arc.gc.ca/tax/individual ... ove-e.html
Did you move between two locations outside Canada?
Provided you met all other conditions and requirements, you can claim eligible expenses for a move between two locations outside Canada if you are a factual or deemed resident and you moved from the place where you ordinarily resided to live in another place where you ordinarily reside.
I am a factual resident. I changed job in US so the moving is a qualified moving expenses.
However, I read another link:
http://www.cra-arc.gc.ca/tax/business/t ... not-e.html
This note tell me that many employer sponsored relocation are not taxable. So, I guess the right way for me to do is to deduct those reimbursement from income.
Thanks for the reply. I checked the following link
http://www.cra-arc.gc.ca/tax/individual ... ove-e.html
Did you move between two locations outside Canada?
Provided you met all other conditions and requirements, you can claim eligible expenses for a move between two locations outside Canada if you are a factual or deemed resident and you moved from the place where you ordinarily resided to live in another place where you ordinarily reside.
I am a factual resident. I changed job in US so the moving is a qualified moving expenses.
However, I read another link:
http://www.cra-arc.gc.ca/tax/business/t ... not-e.html
This note tell me that many employer sponsored relocation are not taxable. So, I guess the right way for me to do is to deduct those reimbursement from income.
ONE WORLD
The question is whether you truly are a factual resident. You are obviously not a deemed resident, since you are not a govt employee.
But are yo ua factual resident?
If you 'ordinary live' in US, then you are more likely a deemed non-resident, not subject to Cdn taxation on your foreign income.
I will admit though, that I do not know why they would have that sentence in the guide, since it is a near impossibility.
Note in the definition of factual resident:
If you also establish residential ties in a country with which Canada has a tax treaty and you're considered to be a resident of that country for the purposes of the tax treaty, you may be considered a deemed non-resident of Canada for tax purposes.
You cannot be both a factual resident and a deemed non-resident at the same time.
But are yo ua factual resident?
If you 'ordinary live' in US, then you are more likely a deemed non-resident, not subject to Cdn taxation on your foreign income.
I will admit though, that I do not know why they would have that sentence in the guide, since it is a near impossibility.
Note in the definition of factual resident:
If you also establish residential ties in a country with which Canada has a tax treaty and you're considered to be a resident of that country for the purposes of the tax treaty, you may be considered a deemed non-resident of Canada for tax purposes.
You cannot be both a factual resident and a deemed non-resident at the same time.
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
I am a factual resident for Canada tax because my wife stays in Canada.
Well, I guess if I want to use that sentence ( as most of us working is US is a US resident for tax purpose ) to get away from my Canada tax obligation, there are other factors CRA need consider such as my Canada citizenship, which should overrule tax treaty.
Well, I guess if I want to use that sentence ( as most of us working is US is a US resident for tax purpose ) to get away from my Canada tax obligation, there are other factors CRA need consider such as my Canada citizenship, which should overrule tax treaty.
ONE WORLD
Its a close call, but most in your situation are considered deemed non-residents. If you arwe paying a penny in Cdn tax, you should be going for DNR status.
it depends on how much time you vist canada. If she comes and visits you instead of the other way 'round, you are free of Cdn tax.
Your citizenship is farther down the list.
If you are indeed factual resisnt of canada like you contend, then you should also be considered, by treaty, a non-resident of US; then I trust you are filing a 1040NR using the special provisions of article XXV?
it depends on how much time you vist canada. If she comes and visits you instead of the other way 'round, you are free of Cdn tax.
Your citizenship is farther down the list.
If you are indeed factual resisnt of canada like you contend, then you should also be considered, by treaty, a non-resident of US; then I trust you are filing a 1040NR using the special provisions of article XXV?
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
Wow, I do not know if there is a difference between my visiting canada and my wife visiting USA. Thank you for the information. But that is too complicated for me. I do own a couple of hundred Canada tax so it is OK for me to file Canada return.
I just found my moving expenses for Canada tax is more complicated than I thought:
Here is what happened. I spent 3K for moving in 2007 except those paid directly by employer. The 3K expense includes my moving within US, plus my moving from Canada to US too ( non qualified moving expense for Canada tax).
In order to balance US income, I only report 1K cost and got reimbursement in 2007 and got the rest 2K in 2008.
Now for Canada Tax, I add all qualified moving expenses together - Mileage ( got reimbursement in 2007) , lease break (get reimbursement in 2008) and temp living meals ( get reimbursement in 2008). They are about USD 1700.
I guess it is the easiest way for me to add all 2007 reimbursement 1K as income in 2007, then claim those USD1700 qualified Canada moving expenses in my 2007 Canada return.
In 2008, I should add 2K reimbursement in my income for Canada tax and claim no moving cost. However, as I am a non-resident in 2008 for Canada tax so I can get away from it.
I just found my moving expenses for Canada tax is more complicated than I thought:
Here is what happened. I spent 3K for moving in 2007 except those paid directly by employer. The 3K expense includes my moving within US, plus my moving from Canada to US too ( non qualified moving expense for Canada tax).
In order to balance US income, I only report 1K cost and got reimbursement in 2007 and got the rest 2K in 2008.
Now for Canada Tax, I add all qualified moving expenses together - Mileage ( got reimbursement in 2007) , lease break (get reimbursement in 2008) and temp living meals ( get reimbursement in 2008). They are about USD 1700.
I guess it is the easiest way for me to add all 2007 reimbursement 1K as income in 2007, then claim those USD1700 qualified Canada moving expenses in my 2007 Canada return.
In 2008, I should add 2K reimbursement in my income for Canada tax and claim no moving cost. However, as I am a non-resident in 2008 for Canada tax so I can get away from it.
ONE WORLD