TN status tax question.

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
RReddy
Posts: 3
Joined: Fri Sep 25, 2020 6:18 pm

TN status tax question.

Post by RReddy » Fri Sep 25, 2020 6:37 pm

Hello,
I would really appreciate if someone could answer my question.
I am Canadian resident moved to USA (Texas) on TN in March 2020, currently, my wife and kids live in my primary residency in Canada and planning to join me in USA next year 2021. i also have two investment properties in Canada one already rented and another closing in 2021.
Our plan is to return back to Canada after 4 to 5 years for now.kids are currently getting child benefits from Canada (just minimal I think $300 a month.)
I worked in canada until Feb end 2020. I also have TSFA/RRSP/credit card accounts which I still want to maintain.

Questions #
1) When I file USA/Canada taxes next year, should I mention as a deemed resident and provide USA income. Do I have to notify someone in Canada that I left ? In this case (I will mention employment income for 2 months in Canada + USA employment income for the rest of the year + rental income in Canada). i currently live in Texas with no state tax. Will I end of pay a lot in taxes in Canada. I want to go legal way and if possible save some money doing something possible at right time.
2) I see a lot about selling TFSA before leaving and getting house appreciated.
Do I have to sell my TFSA , the reason I ask is lets say I want to sell my TFSA next year will I end up paying taxes ?
How do I get my-house appreciated , is it thought a bank or real-estate agent ?
3) DO i have to declare my rental income in USA ? If yes will I be taxed on this in USA.

This is all new to me as this is my first year. Also I would appreciate if know any tax consultant first hand either in Toronto or Texas.

nelsona
Posts: 16588
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TN status tax question.

Post by nelsona » Sun Sep 27, 2020 8:25 pm

Do you visit your family in Canada, or do they visit you? That will determine if you are still resident or not.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

RReddy
Posts: 3
Joined: Fri Sep 25, 2020 6:18 pm

Re: TN status tax question.

Post by RReddy » Mon Sep 28, 2020 10:00 am

They are visiting me in USA.

nelsona
Posts: 16588
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: TN status tax question.

Post by nelsona » Mon Sep 28, 2020 1:03 pm

You you can delcare yourself non-resident (deemed non-resident, which has the same outcome) from March, and file a departure return in Canada. Be aware that once you do this you need to make sure you haven't over contributed to your TFSA. You can leave your TFSA as is if you want, but you will have to pay US tax on any gains it has made since Jan 2020. You can keep all tehse other accounts.

You do however need to do something about your portion of the rental income, as some needs to be withheld and remitted monthly to CRA.

For US, you will best file a full year 1040, reporting JOINT world income, and taking foreign tax credits or exclusion of Cdn wages from before the move for you and spouse (who would get exclusion for all wages for 2020.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

RReddy
Posts: 3
Joined: Fri Sep 25, 2020 6:18 pm

Re: TN status tax question.

Post by RReddy » Mon Sep 28, 2020 5:26 pm

Thank you very much for your reply , I appreciate it.

Post Reply