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 My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. 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