property tax

[asemanhaftom]

Hi,
My husband is a Canadian American ( he is citizen in both countries) and I am us citizen and have Canadian PR card. We are living and working in the US currently and we own a house in the US. 2 years ago we purchased an apartment in Toronto because we know we will be back and live in Canada. since then we are doing taxes in the US and Canada. In Canada we have zero income and sometimes government sends us a check ( assuming that they are trying to help us because of low income!). In the US we declare everything we have in the country at taxing time. My question is should we tell Canadian government that we are living and working in the US? if yes what will happen? would we pay more taxes? could we do our tax only in the US including our Canadian property? any suggestion will help. Thanks for sharing your experiences.

 

[scylla]

If you are filing taxes in Canada then you should be declaring your worldwide income. If you haven't been declaring your worldwide income, then you have been filing your taxes incorrectly and this could cause problems for you in the future (i.e. CRA could come after you for taxes not paid / refunds they gave you that you didn't actually earn).

I would find a good tax professional who is familiar with the tax processes in both countries to help you figure out what to do next. Based on the information you've provided, you'll need to refile some of the tax returns you have filed in the past.

 

[asemanhaftom]

Thanks for the answer. I'll talk to my husband and we'll find a tax professional ASAP. I think it's a serious problem. We didn't mean to act against the law, we did whatever our tax company in Canada told us to do, usually we call him every year and update everything. We are not used to lie or live by taking advantage of some nice services. Although my son is Canadian I never applied to get money for him from government nor did I apply for OHIP card for him because he was borne in the US ( he got his proof of citizenship from Canada because his father was Canadian citizen) . Only a couple of past months we recognized some money (about $50) sent to our Canadian account by the government. I will resolve the tax issue immediately. I'm glad I asked it's not too late! Hope so!

 

[canuck_in_uk]

Definitely consult with a professional and see what they suggest. Though it is a serious issue, it is correctable. I know that CRA does offer a voluntary disclosure scheme to correct previous dealings, which may prevent you from paying any penalties. http://www.cra-arc.gc.ca/gncy/nvstgtns/vdp-eng.html,


And Canada and the US do have a tax treaty in place to prevent you being double taxed on your income in either country. You pay your taxes as normal in the US and then file your Canadian taxes, stating your US income and how much tax you paid on it. Basically, if you paid more tax in the US then you would have in Canada, then you won't owe anything to CRA. If you paid less US tax than you would have in Canada, then you will owe CRA the difference.

 

[torontosm]

If you are filing taxes in Canada then you should be declaring your worldwide income. If you haven't been declaring your worldwide income, then you have been filing your taxes incorrectly and this could cause problems for you in the future (i.e. CRA could come after you for taxes not paid / refunds they gave you that you didn't actually earn).

I would find a good tax professional who is familiar with the tax processes in both countries to help you figure out what to do next. Based on the information you've provided, you'll need to refile some of the tax returns you have filed in the past.

This is not entirely accurate. You could easily be deemed a non-resident for tax purposes, and only have to pay tax on your Canadian income.

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html

 

[canuck_in_uk]

This is not entirely accurate. You could easily be deemed a non-resident for tax purposes, and only have to pay tax on your Canadian income.

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html

I do not believe they can be deemed non-resident, as they own a home in Canada. Even if they don't live there, it is still considered a fairly significant residential tie.

 

[torontosm]

I do not believe they can be deemed non-resident, as they own a home in Canada. Even if they don't live there, it is still considered a fairly significant residential tie.

If you rent your home to a third party on an arm's length basis, then you can still be considered a non-resident. If the home is not available for you to reside in (i.e., it has been rented), and you have taken your furniture, belongings, assets, etc. outside of the country, then there is nothing wrong with keeping a property in Canada.

 

[KRP]

http://homeownership.ca/category/new-to-canada