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.
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Hello - I am a dual US/Canadian citizen living in Canada for the past 45 years. I am considering renouncing my US citizenship. I understand that I must complete form 8854 after I renounce. In order to avoid "covered" status on form 8854, my net assets must be less than $2 million. While my assets are under $2 million, I have my name on my elderly father's financial accounts so I can help him with banking. This money is not mine, and my father declares all of the income from these accounts on his US and Canadian tax returns (I have included them on my FBARs as I have signature authority over them). If my assets were added to my father's assets, the total would be over $2 million. My question: Should I have my name removed from my father's accounts before I expatriate, or would removing my name be unnecessary since the money is not mine?
Just an additional question: My wife is a Canadian citizen and a Canadian resident. We own our home jointly in Canada. We have both worked and have earned (very roughly) equal amounts over the years. Would I include half of the value of our home in my net worth for form 8854? And if I include half of our home's value in my net worth, is that because we own our home jointly, or is it because we have earned roughly equal amounts over the years?
My wife renounced her US citizenship in 2018. She filed her Form 8854 a few weeks ago. We are joint owners of our house here in Canada. On line 16 column (a) of the Balance Sheet (Schedule A of Part V), she put 50% of the (estimated) value of the house as renunciation day. In column (b) she put 50% of the price we paid when we bought the house.
FormerPatriot in Montreal