Canadian citizen moves to US with PR parents - David

QUESTION: Hi,
I am Canadian citizen and move to US in November 2005 on TN visa after
getting a job here. I put my house on sale while I moved, but it was sold in
Jan 2006. My parents are living with me who are not citizens yet, but they
are permanent residents. I have following questions:-
1) Do I need to file Canadian tax for taxation year 2006?
2) Do I have to pay capital gain tax on my property that was sold after I
moved to US?
3) I have contributed 8 years in CPP. Will I be eligble for pension at the
retirement age in Canada?
4) How do I move my money from Canada to US to buy a house?
5) Will my parents be able to apply for Canadian citizenship (They have
alreay lived there for 2 years), though they are living with me in US.
Thanks for your guidance.
---------------------------------------------------------
david ingram replies:
1.	You are a non-resident of Canada and I imagine that the lawyer for the
purchaser will want to withhold 25% of the sale price of your home unless
you fill in form T2062. Form T2062 is required to be filed within 10 days of
the physical sale or bears a penalty of $25.00 a day. The filing of Form
T2062 means that you will have to file a 2006 Canadian Income Tax return
although you would not report any income earned in the US.
2.	If it was shown that your property had increased in value from the date
you left until the date it was sold, you would owe capital gains tax.
3.	Your CPP will be collectible in the US.  The tone of your letter
indicates that you intend to stay.  The possession of a TN visa is only
legal if you have no intention of remaining in the US for any more than a
year.  I know that the practice is somewhat different but that is the law.
If you came to Canada for a visit and told the Homeland Security officer at
the border that you loved the US and intended to stay there for "ever", he
or she would take away your TN visa at that time.
4.	Write a cheque or have your bank or Credit Union Transfer it for you.
5.	NO - to qualify for Canadian citizenship, they have to have been
physically in Canada for 1065 days out of four years. - i.e. three out of
four years.  I also bet that they are not with you in the US legally
although if elderly, I assume that you might have them there as TD
dependents. Your parents should move back to Canada immediately and apply
for their citizenship in 15 months or so. If they were to stay with you in
the US for 37 months, they would automatically lose their Canadian PR cards.
If you then lost your job in the US and were forced to come back to Canada,
you could not bring your parents with you or would have to start the process
all over.  Under US labor laws, if your company has a work slowdown, TN
workers are the FIRST to be laid off. You are supposed to leave the US
"right now" unless you anticipated it and applied for a ten day grace period
when you got the visa (I have NEVER seen this done).
With regard to your parents, when you applied to bring them to Canada
originally, Canada was allowing 22,000 parents a year into Canada and it
took 3 to 5 years.  Since June 22, 2002, we are only allowing about 6,000
parents a year into Canada and there are already 120,000+ parents in the
queue meaning a 20 year waiting list for anyone applying now.
When you file your 2005 Departing Canada return, you will also need to file
form T1161 listing the assets you are leaving behind.  This form and maybe
T1243 and T1244 "must" be filed by April 2006. Failure to file it is subject
to a $25.00 per day  fine for the first 100 days it is late for a total of
$2,500.  Because people are always on time or a year late, the only penalty
I have ever seen is $2,500.
Glad to help you with those returns.  There are few of us around who know
the rules.
--------------------------------
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US / Canada / Mexico tax, Immigration and working Visa Specialists
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