I am a Canadian citizen emigrating with family by year end 2019. To avoid taking a huge loss am not willing to sell my home now so will handover to a property manager for long term rentals.
What is the best way to achieve an Emigrant CRA classification while still maintaining my bank and investment accounts. I need my Canadian bank accounts to receive part of my monthly income.
Possible approaches from reading CRA online info:
1. Transfer home to property manager and sign long term lease, keep bank accounts and drivers license, dispose of vehicles, drop provincial health insurance and pay tax on rental income
o In addition to bank accounts, adding a rental property might be secondary ties too many therefore leading to the risk of being deemed a factual resident for tax purposes
2. Incorporate and list self as sole director, transfer home to company
o Requirements and process of incorporation
o Ease of transferring home to corporation
o Long term implication especially when I move back and how to transfer property back as primary residence
In summary I want the following:
– To be classified as Emigrant (non-resident) by CRA
– Ability to report earnings from outside Canada
– Pay no taxes on income earned abroad
– Pay taxes on income earned inside Canada (rental income)
– Keep bank accounts/investment accounts/drivers license/passport