1040-NR or 1040 for 2008, 2009?

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jugador
Posts: 16
Joined: Thu Jan 29, 2009 11:52 am

Post by jugador »

I should have clarify that I am amending 2007 to 1040, and filing 1040 since. Being my income from the US, I find that I get limited in what I can claim since I run out of foreign credit in my T1 and start paying taxes in Canada. That's why I was evaluating the advantages of decalring myself DNR around GC time. Not have done DNR at the begining of 2007 alowed me to claim the principal residence exception for the sale of the house this year.
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Wow, you are really over think this.

You would still be be entitled to the principal residence exemption as a non-resident, as long as you sold within a year of departure.

You still haven't convinced me that you have departed yet, so there was no need for subterfuge. Either you left canada at some point or you didn't. That will be your departure date, whether you are DNR or simple non-resident.

And the term "Deemed" in DNR means that the Govt deems you non-resident, not yourself.
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
nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

And even if you sold much later than a year after departure, so little of the gains, if any would be taxed, that it was simply not worth ANY tax on your wages to do this.
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
jugador
Posts: 16
Joined: Thu Jan 29, 2009 11:52 am

Post by jugador »

Then, I am starting not to see any benefit in trying to put myself in a position to be deemed non-resident by the government at the time of getting my GC. Getting my GC and selling my house, but keeping a business in Canada and a common-law status might not be acceptable.
Should I keep filing resident in both countries even though I may be paying taxes to Canada and even run into situations in the future in which the treaty may not avoid be double tax?
Also, how possible is to go back and amend my returns in Canada to non-resident with departure date Jan 1, 2007?
nelsona
Posts: 18677
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

The answer as to when you left is this: Where do I live, and when did i MOVE there.


And selling your house and buying another one doesn't change your status.

Also, CRA would be very leery of someone who sudennly becomes non-resident on 01/01 of any year, never mind 2 years after the fact. Be more realistic as to the DATE you MOVED.

And, since you did file 1040NR for 2007 using the closer connection, you now can't say that you were non-resident for 2007. You told IRS tha tyou never left canada, so you are stuck with that.
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
jugador
Posts: 16
Joined: Thu Jan 29, 2009 11:52 am

Post by jugador »

I did move to the US a few days after new year's 2007, and I agree that I cannot go back to non-residency now.
My options are to try DNR around GC, break all my ties with canada or keep filing resident.
I am trying to evaluate if it is worth it to try DNR and what will happend if Canada Revenue does not accept it.
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