House under my name in Canada want to become non-resident

tax1000 · Post by **tax1000** » Tue Nov 27, 2012 7:09 am

I'm a PR of Canada but no longer plan on living there and my PR will expire soon. My only concern is that there is a house under my name, I didn't pay for it and don't live in it. Is there anyway for me to become a non-resident for taxes if this house is under my name? how about if the ownership is changed to another family member's name? Would I still be liable for exit taxes?

nelsona · Post by **nelsona** » Tue Nov 27, 2012 7:39 am

All deperting residents are subject to exit taxes. if you move to live legally in another country which has a tax treaty with canada, you will become non-resident of canada even if you have a property in canada.

tax1000 · Post by **tax1000** » Tue Nov 27, 2012 11:16 am

[quote="nelsona"]All deperting residents are subject to exit taxes. if you move to live legally in another country which has a tax treaty with canada, you will become non-resident of canada even if you have a property in canada.[/quote]

Thanks for your reply.

I live in the US now, so that means I'm now a non-resident of Canada?

nelsona · Post by **nelsona** » Tue Nov 27, 2012 11:30 am

Yes, assuming you have "more" ties in US than in Canada, you would be considered a "deemed non-resident" of Canada, if the house you own in Canada is empty, or "non-resident " of canada if the house you own is rented out.

nelsona · Post by **nelsona** » Tue Nov 27, 2012 11:30 am

Your departure date would be the date that this situation began.

tax1000 · Post by **tax1000** » Thu Dec 13, 2012 2:32 am

[quote="nelsona"]Yes, assuming you have "more" ties in US than in Canada, you would be considered a "deemed non-resident" of Canada, if the house you own in Canada is empty, or "non-resident " of canada if the house you own is rented out.[/quote]

Sorry for taking long to reply, but I have 2 more questions.

The house I own, I have relatives living in it. Would that be a problem? And I have bank accounts open too, and I also have my health card. Can I still become a non resident?

nelsona · Post by **nelsona** » Thu Dec 13, 2012 10:58 am

I already answered this: you will be resident when your US ties are more than your Cdn ties.
Owning an empty house or having one with relatives is equivalent. It is a strong residential tie, but if you move to US, and live and work there, this outweighs the Cdn house. You become "deemed non-resident", or non-resident by treaty, which is treated exacty the same as true non-resident.

tax1000 · Post by **tax1000** » Wed Dec 19, 2012 5:20 am

[quote="nelsona"]I already answered this: you will be resident when your US ties are more than your Cdn ties.
Owning an empty house or having one with relatives is equivalent. It is a strong residential tie, but if you move to US, and live and work there, this outweighs the Cdn house. You become "deemed non-resident", or non-resident by treaty, which is treated exacty the same as true non-resident.[/quote]

Thank You Nelsona

While I'm a non-resident of Canada and the house is sold or changed to a family's name, would it cause any tax complication? would I need to pay any kind of tax after the house is changed to a family member's name?

nelsona · Post by **nelsona** » Wed Dec 19, 2012 6:55 am

jamesbishop911 · Post by **jamesbishop911** » Thu Dec 20, 2012 7:11 pm

ok if he does not pay taxes no more coz he will be considered as non resident of canada then his relatives are living in the house ,will be his relatives will pay the taxes?

nelsona · Post by **nelsona** » Thu Dec 20, 2012 9:36 pm

it will be there house, so they won;t pay tax on it either. Homes aren't taxed in canada.