Moved from Canada to US but have not filed CRA income Tax

Question

2508 viewsJune 18, 2019Cross Border Tax

0

Anonymous (anonymous) Posted June 17, 2019

Hi Allan,

I moved to the US in 2011/2012 but travelled back and forth frequently. My last CRA income tax was filed for 2012 (I just checked and I did not indicate my move to the US in this return.)

1. Do I amend my return with my move in 2012?
a. what are the tax implications?
b. Do I have to retroactively file returns for 2013-2018?
2. I’m not sure of what type of resident I am considered and need help determining same (i.e “deemed non-resident of Canada?)
3. Do I owe CRA Departure Tax?

My only Canadian assets are:
Owner of 50% of residential home in BC (Parents currently live there and do not pay rent)
Mortgage for the home mentioned.
1 Checking account, 1 credit card
Life insurance policy
RRSPs (not contributed since 2013)
no Canadian income

Also, what are the tax implications if I transfer my 50% of my home to my mother? OR what are the tax implications, if my sister and I add my mom to the title (without removing me)?

Thank you in advance.

1 Answer

score 0 · Answer 1 · 2019-06-18T14:10:42+00:00

According to the Canada-US tax treaty, you are a resident of the country where your permanent home is located. A permanent home can either be rented or owned by you. If you have a permanent residence in both Canada and the US, then you are a resident of the country where your personal and economic ties are strongest. According to you, you have a permanent home in both Canada and the US. Therefore, the answer to whether you are a resident of Canada or the US depends on where your personal (e.g. spouse, children) and economic ties (e.g. job, investments, pension, etc.) are strongest.

If you are a non-resident of Canada (after your departure from Canada), then you have two options to choose from: (a) File form NR73, Determination of Residency Status with the CRA and amend your 2012 filing for your departure date, or (b) File a Departure Return with a departure date of January 1, 2013. However, if you are a resident of Canada then you will have to amend your 2012 return and file your 2013 to 2018 returns with the CRA to report your American income. In this case, you will owe tax to the CRA, less a foreign tax credit for the American taxes paid.

I will need more information from you in order to answer your questions about the tax implications of transferring ownership of your home in Canada. My email address is amadan@madanca.com

Moved from Canada to US but have not filed CRA income Tax

1 Answer

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