Canadian on TN in the US, few questions

rbn1 · Post by **rbn1** » Mon Apr 02, 2012 4:50 pm

Hello everyone. I m a Canadian citizen on a TN in the USA. I m 30 years old and single.

I left Canada on the 28th of December, 2011, started as an employee from January 1st 2012. I do own a home in the GTA, have bank accounts, rrsps and a few other accounts.

I do understand that I m considered a canadian resident by the CRA for tax purposes.

I have a few questions.

1. I will be taxed in Canada just as per Canadian tax brackets ( minus what I have paid in the US) when I do my taxes for 2012. Is that correct ?

2. Am I allowed to contribute to an rrsp in Canada in order to bring down my taxes in Canada ? I do have a lot of unused room .

3. My company provides with me a furnished condo and a leased car. Rent, gas and insurance are paid by the company . Is this some sort of a taxable benefit as per the CRA or IRS ?

Thanks a lot.

JGCA · Post by **JGCA** » Mon Apr 02, 2012 7:25 pm

You are a non reisent of Canada the day you left under treaty file a departure return in Canada starting Jan 1 12 you file as US resident full 1040. Elect under 8891 to defer RRSP earnings . Do not file or reduce CND taxes its not going to help you .

nelsona · Post by **nelsona** » Mon Apr 02, 2012 9:48 pm

Just to be clear, the departure date is dec 28.

I agree with JG, that you are deemed non-resident by treaty. Your living arrnagements in US are sufficient for you to be non-resident.

rbn1 · Post by **rbn1** » Mon Apr 02, 2012 9:52 pm

[quote="nelsona"]Just to be clear, the departure date is dec 28.

I agree with JG, that you are deemed non-resident by treaty. Your living arrnagements in US are sufficient for you to be non-resident.[/quote]

Yes, I left Canada on December 28th, 2011.

I was thinking that as long as you owned a home in Canada, you are considered a Canadian resident by the CRA and have to pay Canadian income taxes also.

JGCA · Post by **JGCA** » Tue Apr 03, 2012 7:23 pm

This may be under normal rules of the ITA, but treaty overides you can select the one you wish to follow.

nelsona · Post by **nelsona** » Tue Apr 03, 2012 9:12 pm

You are not really soupposed to "select". CRA deeems you non-resident.
No choice.

JGCA · Post by **JGCA** » Wed Apr 04, 2012 7:22 pm

True, you do not Select just follow which one dictates, in this case its the treaty which you must select.

nelsona · Post by **nelsona** » Wed Apr 04, 2012 9:04 pm

CRA will also apply the treaty: THEY deem people non-resident whether taxpayer wishes or not.