My husband and I(non Canadian PR or citizen) moved to US on August 2016, my husband is in H1B and I am in H4. We have been advised that we are non-resident of Canada on the date we left Canada. However, the US employer of my husband has done a appraise for him, indicated that he will not be US tax resident until Jan 2017. So my question is, in this case, the date we became Canadian non-resident still would be the date we left Canada? If it were the case, would that be odd we are non-resident for neither country?
My second question is, we have rental property in US and I just realized we need to do appraisal for the FMV of the house( deemed disposition) on the departure date. Would that be too late to do the appraisal now? Or, can we use the property value showing on the property tax bill(it is about to release on November).
If I have to do a appraisal, do I need to use local appraisal company to have an official value or can I have the mortgage advisor to get an unofficial value which still can be applied?
Thank you for your help in advance!
Departure of Canada Confusion
Moderator: Mark T Serbinski CA CPA
Unlike canada, There is a difference between being a resident of US and filing a resident tax return. You will simply file a 1040NR for 2016 in US.
This doesn't change that you left Canada and became non-resident in August.
You ARE a US resident, just not long enough to be forced to file a resident 1040.
As to the US property, an MARKET appraisal done at this time (looking back to august) would be fine, but by an appraiser, not simply the tax rolls, which are not true market appraisals.
btw, whether you are resident of US or not is not the perview of your employer-- it really doesn't matter what he thinks. You may decide to file as a US resident for 2016 if you wish, as long as you report all world income for the year as a couple. But, by moving to US in August, you MAY decide to file a 1040NR if it is to your advantage.
This doesn't change that you left Canada and became non-resident in August.
You ARE a US resident, just not long enough to be forced to file a resident 1040.
As to the US property, an MARKET appraisal done at this time (looking back to august) would be fine, but by an appraiser, not simply the tax rolls, which are not true market appraisals.
btw, whether you are resident of US or not is not the perview of your employer-- it really doesn't matter what he thinks. You may decide to file as a US resident for 2016 if you wish, as long as you report all world income for the year as a couple. But, by moving to US in August, you MAY decide to file a 1040NR if it is to your advantage.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
[quote="nelsona"]Unlike canada, There is a difference between being a resident of US and filing a resident tax return. You will simply file a 1040NR for 2016 in US.
This doesn't change that you left Canada and became non-resident in August.
You ARE a US resident, just not long enough to be forced to file a resident 1040.
As to the US property, an MARKET appraisal done at this time (looking back to august) would be fine, but by an appraiser, not simply the tax rolls, which are not true market appraisals.
btw, whether you are resident of US or not is not the perview of your employer-- it really doesn't matter what he thinks. You may decide to file as a US resident for 2016 if you wish, as long as you report all world income for the year as a couple. But, by moving to US in August, you MAY decide to file a 1040NR if it is to your advantage.[/quote]
Thank you Nelson!
I got another question. I have an investment account in one of the Canadian bank to buy some US and Canadian stocks. There are dividends and capital gains for 2016. I wonder while filing US tax return as non resident alien, should I report the dividend incomes and capital gains from the US stocks?
This doesn't change that you left Canada and became non-resident in August.
You ARE a US resident, just not long enough to be forced to file a resident 1040.
As to the US property, an MARKET appraisal done at this time (looking back to august) would be fine, but by an appraiser, not simply the tax rolls, which are not true market appraisals.
btw, whether you are resident of US or not is not the perview of your employer-- it really doesn't matter what he thinks. You may decide to file as a US resident for 2016 if you wish, as long as you report all world income for the year as a couple. But, by moving to US in August, you MAY decide to file a 1040NR if it is to your advantage.[/quote]
Thank you Nelson!
I got another question. I have an investment account in one of the Canadian bank to buy some US and Canadian stocks. There are dividends and capital gains for 2016. I wonder while filing US tax return as non resident alien, should I report the dividend incomes and capital gains from the US stocks?
Because you were not considered resident for 183 days, you do not need to report any cap gains on your stck (US or otherwise) because you are exempted by the treaty. It is reportable in Canada per Cdn rules, including deemed diposition on departure.
Your US dividends do need to be reported, as NEC income, at the 15% tax rate. You should have had some US tax withheld be the bank and this should be on a T3 or T5 (as foreign tax). Use the tax in addiction to your other US tax as a payment.
Your US dividends do need to be reported, as NEC income, at the 15% tax rate. You should have had some US tax withheld be the bank and this should be on a T3 or T5 (as foreign tax). Use the tax in addiction to your other US tax as a payment.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
I have been holding these stocks for around 3 years, however I never reported the dividends in the US tax returns, since I don't realize that it is reporting requirement for stocks purchased from a Canadian broker.
Yes you are right there is withholding tax in my T5. However I did not report the dividend in 2016's US tax return. Would that be a problem? The total income is around $200.
Yes you are right there is withholding tax in my T5. However I did not report the dividend in 2016's US tax return. Would that be a problem? The total income is around $200.