Tax Question

[AuroraB]

I am not sure what forum this best fits under.

We are planning a move from the US to Canada next year, currently working on spousal sponsorship paperwork.

I have been living in the US for 18 years, so it is has been a long time since I have had any Canadian tax obligations.

When my husband get's his PR, do we need to file taxes in Canada that moment, or can we wait until he actually establishes residency?

Also, assuming it is when he establishes residency, let's say we arrive on Nov 1. Do we pay Canadian taxes on capital Gaines from June 1 of that same year when we were still in the US?

 

[k.h.p.]

You should probably talk to an accountant.

 

[AuroraB]

I have a meeting with an accountant in Jan., however it is just something I can't get out of my head so I thought I would throw it up here and see if anyone has personal experience.

 

[Canada2020eh]

I am not sure what forum this best fits under.

We are planning a move from the US to Canada next year, currently working on spousal sponsorship paperwork.

I have been living in the US for 18 years, so it is has been a long time since I have had any Canadian tax obligations.

When my husband get's his PR, do we need to file taxes in Canada that moment, or can we wait until he actually establishes residency?

Also, assuming it is when he establishes residency, let's say we arrive on Nov 1. Do we pay Canadian taxes on capital Gaines from June 1 of that same year when we were still in the US?

No and no.

 

[Buletruck]

You (and your husband) only need file taxes for income earned in Canada. Taxes due are only from the time he becomes a resident. Keep your previous US taxes handy when you file. CRA might want to confirm you’ve filed in the US.

 

[canuck78]

You (and your husband) only need file taxes for income earned in Canada. Taxes due are only from the time he becomes a resident. Keep your previous US taxes handy when you file. CRA might want to confirm you’ve filed in the US.

That's not true. Worldwide income is often taxed. Really depend on his citizenship, where the money/investments are located and what the taxation treaties are between countries. He won't be a tax if you only land in December.

 

[Buletruck]

That's not true. Worldwide income is often taxed. Really depend on his citizenship, where the money/investments are located and what the taxation treaties are between countries. He won't be a tax if you only land in December.

If he’s a US citizen he isn’t required to report taxes until he lands and only if he has Canadian income. Canada doesn’t tax foreign income....been there, done that.

 

[canuck78]

That's not true. Worldwide income is often taxed. Really depend on his citizenship, where the money/investments are located and what the taxation treaties are between countries. He won't be a tax if you only land in December.

But OP's husband isn't a US citizen.

 

[canuck78]

If he’s a US citizen he isn’t required to report taxes until he lands and only if he has Canadian income. Canada doesn’t tax foreign income....been there, done that.

Based on past posts I knew he wasn't a US citizen.

 

[k.h.p.]

This is why an accountant is maybe helpful.

 

[AuroraB]

My husband is a naturalized US citizen (he is German but he hasn't had tax obligations there for 20 years). He actually got his US citizenship mainly to sponsor me because at the time there was quite a wait to sponsor the spouses of Green Card Holders and my H1-B visa was expiring....

I do have a meeting with an accountant in 2 weeks, it is just that this issue is weighting on me and I thought some of you may have some answers!

The issue, let's say he gets his Canadian PR in January 2022, then we sell our house in California in June 2022, would the capital gains on the sale on the house in California be taxed in Canada? We can defer all of our capital gain taxes on the home by buying an investment property here, and we want to make sure that we wouldn't them be obligated to pay capital gains on those funds in Canada.

As I haven't lived in Canada in 17 years, I wouldn't have to pay Canadian tax until I reenter Canada, however what would his obligation be shortly after getting his PR, but before moving?

 

[k.h.p.]

It depends partially on when you become a resident of Canada for taxation purposes, which is something an accountant can probably best answer. Ask a simple question here on this forum about taxes, you'll get 15 opinions from 3 people.

 

[Canada2020eh]

My husband is a naturalized US citizen (he is German but he hasn't had tax obligations there for 20 years). He actually got his US citizenship mainly to sponsor me because at the time there was quite a wait to sponsor the spouses of Green Card Holders and my H1-B visa was expiring....

I do have a meeting with an accountant in 2 weeks, it is just that this issue is weighting on me and I thought some of you may have some answers!

The issue, let's say he gets his Canadian PR in January 2022, then we sell our house in California in June 2022, would the capital gains on the sale on the house in California be taxed in Canada? We can defer all of our capital gain taxes on the home by buying an investment property here, and we want to make sure that we wouldn't them be obligated to pay capital gains on those funds in Canada.

As I haven't lived in Canada in 17 years, I wouldn't have to pay Canadian tax until I reenter Canada, however what would his obligation be shortly after getting his PR, but before moving?

I can't give you the reference for it but I was recently in the same situation, returned to Canada after years abroad. In my research you do not have to pay capital gain tax if the property was your primary residence. Your accountant should be able to confirm that. Hopefully he will be up to speed on CDN tax laws if he is US based.