Non resident tax on house mother

My_question_is: Applicable to both US and Canada
Subject:        Non resident ?
Expert:         taxman at centa.com
Date:           Tuesday December 19, 2006
Time:           01:15 PM -0500
QUESTION:
One of my friend told me about your web site it is really very help full.
I am a Canadian citizen and a US green card holder. I have a question
related to Residency status in Canada for tax purposes.
I moved to US in late 2003 as a permanent resident before that I was
commuting from CANDA to work in US. My wife and Kids stayed back and they
joined me in 2004 since then we are living in US all of us have a Green
Card.
 In 2003 tax return I filled out that I am leaving Canada. My wife never
filled out tax for 2003 or after that she was not working. When I send my
Tax return for 2003 they asked me to pay tax back on RRSP money which I used
down payment for my house. I paid that amount that was the last transaction
I made with Revenue Canada. Since then I am only filing a US Tax return.
We own a house in Canada on mortgage. I still have a Canadian bank account
and credit card. My mom lives in that house .Next year mortgage renewal is
due I may sell the house at that time
My questions are,
1. Do I owe any tax to revenue Canada, all my income is from US?
2. Did we ignore any rules as per Canadian Tax laws?
3. If yes how to fix it.
4. My Canadian Bank does not know that I am not living in Canada is this a
problem.
5. I have a small RRSP amount in my account.
6. I never indicated in my US return about RRSP or the house in CANADA.
-----------------------------------------
david ingram replies:
1.	You do not owe tax to Canada on your earnings.
2.	It does not seem so.
3.	??
4.	your Canadian bank should be withholding 10% interest.  let them know you
are a non-resident.
5.	If your Canadian accounts total over 10,000 you must fill out a TDF
90-22.1 for each and every account (wife also).
6,  	You also have to fill out form 8891 to report the internal earnings of
the RRSP
When you sell the Canadian house, you will owe capital gains tax on the
difference between its value when you left and what you sell it for.  You
will pay Canada first and then report it again in the USA and claim any tax
paid to Canada as a foreign tax credit on US form 1116.
I of course, would be happy to look after those returns when the time comes.
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
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