working in Seattle and being factual resident of Canada - international non-resident cross border income tax help estate fa

Time:           03:01 PM -0400

QUESTION:

Hello Tax Experts
I am a Canadian going down from Vancouver to Seattle to work on an L1. I have been transfered to the company's head office.
I am also brining my wife with me whom I met on a cruise ship. She is xxxxxxxxx and has her Canadian immigration papers in process.
I have been told that to claim non residency would cancel my wife's application so our intention is to keep our residency status which I imagine would be easy as the visa is really only for 3 years anyway.
We will rent out our apartment via a management company but I'm wondering how much difference there would be in taxes by doing things this way. If I was making a nice round number like 100K per year US... is it easy to say what the difference would be remaining a resident vs becoming non-resident?
I was always told that if I was in a 30% bracket in the states and a 33% bracket in Canada, I would owe Canada 3% at the end of the year by remaining a Canadian resident.

Is that correct?

Thanks for any information you can give me!

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david ingram replies:

Without paying any attention to the rental or cost of living, as a resident, you would owe Canada $6,600 or so more if you earned $100,000 in Seattle and this was converted to $110,000 Caandian.

This assumes a full year of employment and that you earned all of the income and your wife earned nothing.

The advantage of being a factual resident is that you could avoid capital gains tax on your apartment.
david ingram wrote:
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This is not intended to be definitive but in general I am quoting $800 to $2,800 for a dual country tax return.
 
$800 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
 
$1,000 would be the same with one rental
 
$1,200 would be the same with one business no rental
 
$1,200 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
 
$1,500 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits  no move in or out

$1,600 would be for two people with income from two countries

$2,800 would be all of the above and you moved in and out of the country.
 
This is just a guideline for US / Canadian returns
 
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $150.00 up.
 
With a Rental for $350
 
A Business for $350 - Rental and business likely $450
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
 
Moving in or out of the country or part year earnings in the US will ALWAYS be $800 and up.
 
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
 
8891 forms are generally $50.00 to $100.00 each.
 
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
 
Capital gains *sales)  are likely $50.00 for the first and $20.00 each after that.
 
Just a guideline not etched in stone. 
 
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