Hi
I recently purchased a business in Canada but haven't decided how much time I will spend there helping to run it. I do not need any income from it, just eventually an increased in value of my investment when I sell it. The business is being managed and 51% owned by a friend that is a Canadian citizen. I now am considering spending 8 to 9 months a year there starting in 2008. I still will not require drawing wages but will spend most of my time working for the business. Do I need to protect my U.S. retirement income from Canadian taxation in Canada untill I acquire p.r. status?
Except that without Pr status or an approved work permit, you cannot work in the business. Canadian Prs are taxed on their worldwide income, but you would get a Canadian tax credit for taxes that you paid in the US.
PMM