Canadian on TN in US - Need Help for Filing Tax

[building]

Could someone please answer my questions?
Thanks in advance.


Below are my situations:
1. I am single.

2. I and my parents jointly own a condo in Ontario since 2005. I am still owning this condo.

3. I moved to live and work in British Columiba since 2007. I do not own any properties in BC. I rented a condo when I lived in BC.

4. I moved to live and work for a new employer in California with TN visa since middle of June 2011. I stopped renting the condo in BC since beginning of July 2011. I do not own any properties in US. I have been renting an apartment in US.

5. I have
(a) income from employer in BC in 2011.
(b) income from employer in US in 2011.
(c) interests from bank accounts in Canada in 2011.
(d) interests from bank accounts in US in 2011. One bank in US uses W-8BEN. Another bank in US uses W-9.
(e) got some stock dividends when I was in BC in 2011 and in US in 2011 from the same brokerage account. This brokerage account uses W-8BEN.
(f) got some stock dividends when I was in US in 2011 from another brokerage account. This brokerage account uses W-8BEN.
(g) exercised some stock options after I left BC in 2011. I got these stock options when I was in BC. This brokerage account uses W-8BEN.
(h) contributed to RRSP when I was in BC in 2011.


Below are my questions:
1. Although I have been in US more than 183 days in 2011 (i.e. pass Substantial Presence Test), could I claim that I am a Canadian resident for tax purpose for tax year 2011 since I still own a condo in Ontario and have no properties in US (i.e. closer tie to Canada)? I want to keep Canada as my tax home until I am sure I will be in US permanently.

2. Assume the answer for Q1 above is "Yes". Do I need to file any documents to inform CRA and/or IRS that I would claim myself as a Canadian resident for tax purpose for tax year 2011?

3. Assume the answer for Q1 above is "Yes". Is it true that I need to file only the following for tax return for tax year 2011?
a. Canada side:
i) T1
ii) Ontario or BC tax return and credit? I did not reside in Canada on December 31, 2011.
iii) T2209 Federal Foreign Tax Credits
iv) T2036 Provincial or Territorial Foreign Tax Credit

b. US side:
i) 1040NR
ii) 8833

4. Assume the answer for Q1 above is "Yes". What currency exchange rate I should use for converting USD to CAD for filing tax to CRA?

5. Assume the answer for Q1 above is "Yes". If I would apply and probably get H-1B in 2012, would I still able to claim that I am a Canadian resident for tax purpose for tax year 2012? Of course, assume this is the only change in 2012 from the situations that I listed in the first portion of this post.

6. Is it better for me to use W-8BEN or W-9 for all financial institutions in Canada and US? I think is W-8BEN because I want to keep Canada as my tax home. If have to use W-9 for some financial institutions in US, what issue(s) I might encounter? For example, not able to claim I am a Canada resident for tax purpose.

[nelsona]

Since you do not have a home in Canada and have one in US, you are a US resident and Cdn non-resident.

[building]

Hi nelsona,

Thanks for your reply.
Only want to confirm.
Although I own a condo with my parents in Ontario, this does not consider to have a home in Canada?
I thought that "a property that is own by myself and always available for me to live at in Canada" is considered to be "a home in Canada".

Thanks in advance.

[nelsona]

You do not have a home in Canad. You lived in BC and now you live in Cali.
There is never a requirement to"own" a property in Canada. But you do need to have ahome to be resident. You do not.

Treat yourself as a departed Cdn and Cali resident.

[building]

Hi nelsona,

Once again. Thanks.

Could you please let me know which form/document I should fill out then?
I only know 1040 instead of 1040NR for US side.

[nelsona]

irs pub 519