TN visa holder - tax residency

[okinawafl]

thanks nelsona for your kind explanation. You're truly knowledgeable. Many thanks to you and Seribinski Accounting Firms for setting this great forum.

Have one thing I just think about about my U.S. online brokerage account (opened with my SSN when I was an internship in CA):

1. as a NR of canada from Aug, I only need to report all of my income earned up to date I leave Canada in T1 (less than 10K), and don't need to report any income earned outside canada after I leave.

2. as a NR of US (1040NR), I need to report income earned in U.S. from date I arrive but capital gain tax is exempt for 1040NR. For N.Y. state tax, I think it is exempt too?

My problem is I had around u.s. 2k of U.S. exchange stock shares, if I really sell them around Nov-Dec this year and have short-term capital gain and report in 1040NR, it may not tax on me. And in T1 departure return, since the income is not earned in Canada, I can't report and pay tax too. I am worry, which country and how I should pay tax the capital gain earned?

Am I get into trouble if I sell the stock late this year? Shall I sell all of them now?

[nelsona]

Technically, since you are no longer a resident of canada, you do not benefit from 0% cap gains, but rather would have to pay 30% on these post=departure gains. So, as I have hinted all along, you will be far better off filing a 1040 full year.

[okinawafl]

Thanks nelsona. I appreciated your information and also and this forums offered by Serbinski Accounting Firm.

I have another trouble situation. I have a U.S. online brokerage account (open with my SSN when I worked as 4-month intern before).
The brokerage account now has approx 2.5k worth of U.S. stock. If I sell them in dec after I moved to U.S., May I know how I can be taxed because:
1. In Canada T1, my worldwide income will be only around 10K freelance up to Aug. I assume I cannot report the short-term cap gain I get in December; but
2. In 1040 NR (for Sept-Dec 2021), although the Cap gain per form 1099 can be reported, it won't be taxed for NR? But my understanding is I must be taxed somewhere, may I asked which return I can report it and pay tax on it?

3. For my 2020 1040NR and state tax return for my few months intern work in N.Y., I am looking at it now, the Form 1099 dividend ($15) and short-term cap gain (less than $300) was reported in 1040NR schedure NEC but taxed only on dividend, cap gain around 0.3k was not taxed. Also, I can't find the amount was reported in "New York state" return so I assume I didn't pay any state tax on the dividend and cap gain income. Shall I ask the accountant in U.S. to amend my state return?

[okinawafl]

sorry nelsona
I just put a post again as I though my yesterday questions was not posted successfully. Please ignore the post I can posted few minutes ago.

I just want to check one thing, is it as a non-resident last year (2020 NY state tax return), my dividend income and short-term cap gain earned through the US online brokerage is not subjected New York states tax. Thanks.

[nelsona]

If you were not a resident of a particular state, then they are only intersted in income sourced to that state (ie. wages).

It is federally that you may be subject to 30% tax on cap gains on your 1040NR, but only if you are not a CDn tax resident.

This will end this thread: File your federal taxes in the year you move as FULL YEAR 1040.

[okinawafl]

Hi nelsona,

I follow your information to check more information on how to file as Full-year 1040, and just finish reading the IRS 519, found that on p.9, if I want to be treated as Full-year resident (without passing SPT this year), one of the condition is I need to be "married" but I am single.

But I saw other information on p.8 - First-year choice (for those not pass SPT and not required to be married) - taxpayer can make the choice with writing a statement to Form 1040 to make first-year choice to be treated as a U.S. resident for part of 2021. (If this is possible, I will also attach 1040NR for Jan-Aug as well for IRS reference.)

Am I understand correctly so I can file 1040 as resident of US for tax purpose from date I arrive New York (say Sept 1)? And if I can, would I also be filed as resident of New York State and City for my 2021 U.S. tax?

Thanks for clarifying.

[nelsona]

You will be using the treaty, not Pub 529.