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. ------------------------------------------------------------- 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. 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