Canadian Tax while living in US

[Dimhil]

Hi,

I did my landing in Mar 2018 and then moved back to the US after 7 days.
Later that year, I bought a house in Canada. My brother lived in the house.
But still living in the US. In between, I visited Canada, 3 to 4 times for a couple of days.

I didn't apply for a health or Driver's license.

Now I have moved back to Canada in Sep 2020.


Do I need to file taxes for 2018 and 2019?

 

[primaprime]

If you weren't earning income in Canada during 2018 or 2019, no. Of course, you still need to pay property taxes on the home.

 

[harirajmohan]

Hi,

I did my landing in Mar 2018 and then moved back to the US after 7 days.
Later that year, I bought a house in Canada. My brother lived in the house.
But still living in the US. In between, I visited Canada, 3 to 4 times for a couple of days.

I didn't apply for a health or Driver's license.

Now I have moved back to Canada in Sep 2020.


Do I need to file taxes for 2018 and 2019?

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html
"The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.

Significant residential ties to Canada include:

• a home in Canada"

 

[primaprime]

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html
"The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.

Significant residential ties to Canada include:

• a home in Canada"

Also on that page:

If you established ties in a country that Canada has a tax treaty with and you are considered a resident of that country, but you are otherwise a factual resident of Canada, meaning you maintain significant residential ties with Canada, you may be considered a deemed non-resident of Canada. The same rules apply to deemed non-residents as non-residents of Canada

The US has such a tax treaty. There may be some paperwork OP needs to file, but if they paid US income tax they shouldn't have liability in Canada.

 

[harirajmohan]

Also on that page:


The US has such a tax treaty. There may be some paperwork OP needs to file, but if they paid US income tax they shouldn't have liability in Canada.

Tax treaty is nothing to do with filing requirements. Yes tax treaty eliminates double taxation but one should file tax return in Canada if one owns house.

 

[Dimhil]

So does that mean that I still have to pay the tax diff between canada and US ?

 

[Dimhil]

Tax treaty is nothing to do with filing requirements. Yes tax treaty eliminates double taxation but one should file tax return in Canada if one owns house.

Seems like you are doing the same. Can you please tell me a general rule to as how much is the diff in the taxes. Lets say for 100k USD?
THanks

 

[harirajmohan]

Seems like you are doing the same. Can you please tell me a general rule to as how much is the diff in the taxes. Lets say for 100k USD?
THanks

As far as i know they would only tax on income while residing in Canada(and the income from Canada sources). I say this because when i moved in Dec end, i did not need to pay any tax as most income was while outside canada. So possibly it will be 0 tax. Fill it up in simpletax.ca or ufile.ca and find out. You dont need to spend to check the final calculation.

 

[steaky]

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html
"The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.

Significant residential ties to Canada include:

• a home in Canada"

But OP is not living there! How can it considered to be his home in Canada? There might be some non arms length transactions between him and his brother.

 

[walter_white]

But OP is not living there! How can it considered to be his home in Canada? There might be some non arms length transactions between him and his brother.

Right, the website also says:

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html

• If you established ties in a country that Canada has a tax treaty with and you are considered a resident of that country, but you are otherwise a factual resident of Canada, meaning you maintain significant residential ties with Canada, you may be considered a deemed non-resident of Canada. The same rules apply to deemed non-residents as non-residents of Canada

 

[Dimhil]

Thanks for all your inputs, but to be honest I am still confused. Does anybody knows a good accountant /cra that guide me? Please pm me if you don't want to share his/ her number.

 

[canuck78]

Thanks for all your inputs, but to be honest I am still confused. Does anybody knows a good accountant /cra that guide me? Please pm me if you don't want to share his/ her number.

You need to contact CRA and they will determine if your home makes you a resident for tax purposes.

 

[harirajmohan]

But OP is not living there! How can it considered to be his home in Canada? There might be some non arms length transactions between him and his brother.

CRA talks about the home you own, not about the home you live while listing the significant ties list.
Why would CRA list the home for the ones who stay in Canada as a significant tie as everyone knows that staying in Canada(in own home or rental) has obligation to file taxes without question (even when one stays in hotel).
This part comes when one stays outside and owns a home in Canada.

 

[steaky]

CRA talks about the home you own, not about the home you live while listing the significant ties list.
Why would CRA list the home for the ones who stay in Canada as a significant tie as everyone knows that staying in Canada(in own home or rental) has obligation to file taxes without question (even when one stays in hotel).
This part comes when one stays outside and owns a home in Canada.

Being a tax resident or non resident for tax purpose is one thing and home being significant residential ties is another. Sometimes these things are not related.