QUESTION: My wife is a dual citizen (US/Canadian) and wishes to live in BC.
I am American and my work is in the States. My wife may or may not choose to
work if she relocates and I would come home for 3 days or so of each week.
What tax liabilities might await us under this type of scenario?
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david ingram replies:
A lot would depend upon whether your wife sponsors you into Canada. If she
does "not" sponsor you into Canada and you merely come to visit her and
maintain a home in the US (could be a rented apartment) and are in Canada
less than 183 days a year, and maintain your US medical, keep your car
registered in the US and don't join a bunch of Canadian organizations,
Canada may "deem" you to be a "factual resident" of Canada and subject to
tax. However, you would NOT pay tax.
You would file a Canadian return as a Factual Resident, report all your
income and then deduct every cent on line 256 of the Canadian return under
Article IV of the US / Canada Income Tax Convention (1980) - Income Tax
Treaty
=========
"IF", on the other hand, you are sponsored as a resident, take out BC
medical, get a BC Driver's licence and join two or three Canadian
Organizations, then Canada would consider you a real resident and get to tax
you on your world income. In that case, you should goto www.centa.com and
read the "US / Canada Taxation" section in the second box down on the right
hand side.
You will also find a copy of Article IV of the Tax Treaty (Which is
officially a Tax Convention) there and some interesting tax cases.
ONE warning. If you keep a US registered car that has not been imported
into Canada, your wife can NOT drive it in Canada or it is subject to
seizure.
-------------------------------------------
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Disclaimer: This question has been answered without detailed information or
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