Canadian tax and old age pension

My_question_is: Applicable to both US and Canada
Subject:        Canadian tax and old age pension
Expert:         taxman at centa.com
Date:           Tuesday May 30, 2006
Time:           06:16 PM -0700
QUESTION:
I came to Canada in August 1993 as a landed immigrant and became a Canadian
citizen in
1996. I was 59 years old by that time.
I got a work offer from Stanford University in 2001. Taking into account my
age and position I had that time it was a life time opportunity and I left
Canada in January of 2001. I am 69 now and US citizen.
I have lived in Canada for 7.5 years working all this time. We have an
appartment in New West and rented it as soon as we got a permission from our
Owners Association. We couldn't sell it that time not losing sufficient
money . Appartment was sold in 2004 when real estate prices made it
possible.
Since that time I pay  US taxes and don't pay the regular Canadian ones.
Canadian tax was deducted from profit we make selling an appartment and from
RRSP money I withdrew couple of years ago.
We (my wife and myself) have Royal Bank line of credit and we don't close
that bank Visa card if bank haven't closed it because we haven't use it for
many years.We move our belongins to US in 2001and I have visited Canada 2
times for 8 and 5 days.
My wife live with me and she is a landed immigrant but haven't obtain her PR
card.
My questions:
1. Do I have to pay Canadian taxes besides
   amounts I mentioned?
2. Do I have a right for Old Age pension?
3. Receiving an CPP about C$ 190 per month
   do I have to pay tax in Canada for this
   money?
Thank you.
Jack
------------------------------
david ingram replies:
If you were living in Canada again, you can qualify for the OLD Age Pension
with 10 years residence which would be calculated as 10/40 times the
maximum.  However, even if you qualified after 10 years, you only get a
maximum of seven months after you leave Canada if you have not lived in
Canada for 20 years.
With regard to the sale of your condo, tax may have been withheld but you
still have to file a Canadian tax return to claim a refund.  You will be
entitled to a refund if you used a real estate agent because the R E
Commission is not allowed as a deduction for the primary withholding tax
calculation.
The CPP you are receiving is exempt from Canadian Taxation under Article
XVIII of the US Canada Income Tax Convention.  You report it on the US
return as if it was social security meaning that a maximum of 85% of it is
taxable on your US return on line 20b - i.e. you would convert it to US
funds and add it to the FICA you receive and put the total on line 20a.
then you would use the social security worksheet to calculate the taxable
portion which goes on line 20b.
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