Canadian moving to US on TN visa - tax implications

penny · Post by **penny** » Tue May 14, 2013 10:52 pm

Hi,

I am an ontario resident. I recently accepted a position in a US company. I am obtaining a TN visa and am planning to move to California at the end of the summer.

I currently own a condo in Toronto, which I plan to sell before I leave. I had also purchased another condo in Toronto which will be delivered this summer in the 'interim occupancy' state. It will likely be at least 6-7 months before the building is registered and the condo officially 'closes'.

I plan to keep the new condo, and may or may not rent it for the time being.

With regards to the tax implications of me moving to the US while still maintaining ties to Canada via the condo, I had a few questions:

* Is there any way I can keep the new condo (and some bank accounts here) but NOT be considered factual resident, and therefore not have to file taxes in Canada? Does renting or not renting the condo make a difference in this regard?

* If the answer to the above is no, I assume I will have to report my US income as foreign income on my Canadian tax return. How much of the income tax I will already be paying in US can I claim as foreign tax credit here? For simplicity let's assume an income of $100,000 US. I ask because I have no idea of the magnitude of the 'double taxation' issue. Is it a matter of a few thousand dollars, or could it be a lot more?

Thanks in advance.

nelsona · Post by **nelsona** » Wed May 15, 2013 8:09 am

By living and working in US (and having a permanent address there -- even renting) you will be considered a deemed non-resident (which means although you have ties in Canada, you have MORE in US), and will be considered departed when you move this summer.

nelsona · Post by **nelsona** » Wed May 15, 2013 8:10 am

If you rent out the condo, then you will be considered a pure non-resident, but the treatment is the same.

penny · Post by **penny** » Wed May 15, 2013 11:58 pm

Thank you for the reply. How does that affect my tax Canadian tax filing for this and subsequent years?

nelsona · Post by **nelsona** » Thu May 16, 2013 10:08 am

Well, that is what I was saying. Once a non-resident (either factual or deemed), you no longer file a regular return in Canada.

Read more in the Emigrants guide from CRA.