NEW tax questions! Canadian citizen moving to US

bmozaffari · Post by **bmozaffari** » Mon Jun 13, 2005 10:35 pm

Hi everyone,

I am a Canadian citizen soon getting a Green Card and moving to the US. I've been scratching my head about how tough it seems to be to follow the tax laws properly, but here is my understanding, and my questions:

It's in my best interest to cut off all ties with Canada to be deemed non-resident when I move. I don't want to sell my condo at this time, do I have to rent it out to a stranger? Does that mean I'll have to kick my dad out?

I know it will take a while to establish a credit history down in the States, from experience, do you think my bank will let me keep credit cards and lines of credit once I tell them I'm no longer a resident of Canada?

I will cancel/return my Health Card, but will I permanently lose my Driver's License? If I move back in 5 or 10 years, will I have to take a driving exam again?

Finally, supposing I get it wrong and am considering a resident of Canada after my first year in the US (it would really only be a few months, since I'd move in late fall or so), can I not just file Form NR73, Determination of Residency Status (Leaving Canada), and change the situation for next year if Canada ends up considering me a resident?

TIA, Babak

bmozaffari · Post by **bmozaffari** » Wed Jun 15, 2005 8:55 pm

No replies? Were they difficult questions, or am I doing something wrong here?!? I'm new to this forum!

nelsona · Post by **nelsona** » Thu Jun 16, 2005 9:07 am

As long as you have MORE ties in US than in canad, you won't have to pay Cdn tax on your US income. This is by treaty, which supercedes Cdn tax law.

It would be better, though not required, that you condo be lease to a non-relative. Just remember to have tax withheld from the rent every month. (you are charging rent?).

It is acceptable to have Cdn bank account and a credit card. They won't cancel any of these unless you ask them to. But you MUST notify them that you are living in US. This is true for all financil items. Do not be tempted to leave things going to Pop's address.

You will be a Cdn non-resdent as soon as you move to US. That will be your departure date. NR73 is not req'd to be filed. It should be looked over, and you should bmeet as much of the terms as poosible, but pay more attention to establishing US ties rather than closing Cdn ones.

Your DL is no longer good once you leave the Province permanently,. As to what you will need to do if you return, who knows, and frankly, who cares? You need a US DL very soon after moving.

<i>nelsona non grata... and non pro</i>

bmozaffari · Post by **bmozaffari** » Thu Jun 16, 2005 10:18 am

Thanks for the response, it clarifies things for me. Some of the postings on usenet are scary, they lead you to believe that you could easily be considered a resident of both countries, but I took a look at the treaty and you confirm that the stronger ties determine one or the other as residency. Regards, Babak

nelsona · Post by **nelsona** » Thu Jun 16, 2005 10:44 am

You could be considered the resident of both countries, because of the non-arm's-length relationship with your tenant.

But at worst, that would make you a 'deemed non-resident', and this would still not make your US income taxable in canada.

By the way, I did see you posted on thay *other* website, which is more a forum for whackos than for serious tax items.

<i>nelsona non grata... and non pro</i>