My wife and I moved from Canada to US 18 years ago. Back then, we did not file an exit return with Revenue Canada, we did not change our address on our bank account, RRSPs or brokerage account. (We left my parents address on the accounts)
Each year, we have included any interest, dividends or cap gains from the non-RRSP accounts in our US tax returns. We have included rev-proc 8891 with our returns and filed the FBAR with the US Treasury department.
Not sure if the $ values are relevant, but, the interest and dividends are approx $500/year and the cap gains have been minimal or losses each year until 2011.
In 2011, while reading up on the crack down on foreign accounts, I learned that we are not allowed to have a brokerage account in Canada. So, we immediately closed it, triggering a cap gains of approx $130,000.
I'm planning on including that cap gains on my US return.
But, before I do that, I'd like to know if I should file anything with CRA?
Also, any advice on how best to notify CRA of my non-resident status?
I'm also going to change my address on my bank account and RRSPs - wonder what the fallout will be of doing that.
I know that I shouldn't be in this predicament, but I am. Any advice would be very appreciated.
Need Advice on Correcting Non-Residency Status
Moderator: Mark T Serbinski CA CPA
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jhackberry
- Posts: 2
- Joined: Fri Mar 09, 2012 3:33 pm
Couple of points.
You did not have to sell off your assets in order to close your account, you could have transfer most of them to a US broker (unless of course you had Cdn mutual funds).
Most stock and investment gains held by US residents 9and Cdn non-residents, like you) are not reported to CRA, even if the brokerage is in Canada. But you should have been paying CRA flat tax on Cdn dividends all along, as you were non-resident of canada (see how it gets dicey faking an address?)
No need to notify CRA that you are gone. That ship sailed 18 years ago.
You need to transfer your RRSP account to a broker that deals with you as a resident of your state (TD waterhouse and RBC direct are 2 discounters that will work with you). I would set these up and then m,ake the transfer, NOT tell your current RRSP manager, as they will make you sell pronto for lying to them.
You did not have to sell off your assets in order to close your account, you could have transfer most of them to a US broker (unless of course you had Cdn mutual funds).
Most stock and investment gains held by US residents 9and Cdn non-residents, like you) are not reported to CRA, even if the brokerage is in Canada. But you should have been paying CRA flat tax on Cdn dividends all along, as you were non-resident of canada (see how it gets dicey faking an address?)
No need to notify CRA that you are gone. That ship sailed 18 years ago.
You need to transfer your RRSP account to a broker that deals with you as a resident of your state (TD waterhouse and RBC direct are 2 discounters that will work with you). I would set these up and then m,ake the transfer, NOT tell your current RRSP manager, as they will make you sell pronto for lying to them.
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