QUESTION: Hi, I am Canadian citizen and move to US in November 2005 on TN visa after getting a job here. I put my house on sale while I moved, but it was sold in Jan 2006. My parents are living with me who are not citizens yet, but they are permanent residents. I have following questions:- 1) Do I need to file Canadian tax for taxation year 2006? 2) Do I have to pay capital gain tax on my property that was sold after I moved to US? 3) I have contributed 8 years in CPP. Will I be eligble for pension at the retirement age in Canada? 4) How do I move my money from Canada to US to buy a house? 5) Will my parents be able to apply for Canadian citizenship (They have alreay lived there for 2 years), though they are living with me in US. Thanks for your guidance. --------------------------------------------------------- david ingram replies: 1. You are a non-resident of Canada and I imagine that the lawyer for the purchaser will want to withhold 25% of the sale price of your home unless you fill in form T2062. Form T2062 is required to be filed within 10 days of the physical sale or bears a penalty of $25.00 a day. The filing of Form T2062 means that you will have to file a 2006 Canadian Income Tax return although you would not report any income earned in the US. 2. If it was shown that your property had increased in value from the date you left until the date it was sold, you would owe capital gains tax. 3. Your CPP will be collectible in the US. The tone of your letter indicates that you intend to stay. The possession of a TN visa is only legal if you have no intention of remaining in the US for any more than a year. I know that the practice is somewhat different but that is the law. If you came to Canada for a visit and told the Homeland Security officer at the border that you loved the US and intended to stay there for "ever", he or she would take away your TN visa at that time. 4. Write a cheque or have your bank or Credit Union Transfer it for you. 5. NO - to qualify for Canadian citizenship, they have to have been physically in Canada for 1065 days out of four years. - i.e. three out of four years. I also bet that they are not with you in the US legally although if elderly, I assume that you might have them there as TD dependents. Your parents should move back to Canada immediately and apply for their citizenship in 15 months or so. If they were to stay with you in the US for 37 months, they would automatically lose their Canadian PR cards. If you then lost your job in the US and were forced to come back to Canada, you could not bring your parents with you or would have to start the process all over. Under US labor laws, if your company has a work slowdown, TN workers are the FIRST to be laid off. You are supposed to leave the US "right now" unless you anticipated it and applied for a ten day grace period when you got the visa (I have NEVER seen this done). With regard to your parents, when you applied to bring them to Canada originally, Canada was allowing 22,000 parents a year into Canada and it took 3 to 5 years. Since June 22, 2002, we are only allowing about 6,000 parents a year into Canada and there are already 120,000+ parents in the queue meaning a 20 year waiting list for anyone applying now. When you file your 2005 Departing Canada return, you will also need to file form T1161 listing the assets you are leaving behind. This form and maybe T1243 and T1244 "must" be filed by April 2006. Failure to file it is subject to a $25.00 per day fine for the first 100 days it is late for a total of $2,500. Because people are always on time or a year late, the only penalty I have ever seen is $2,500. Glad to help you with those returns. There are few of us around who know the rules. -------------------------------- David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists Home office 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 (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. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" David Ingram specializes in giving expert income tax and immigration help to American and Canadian citizens living out of their home countries from Zimbabwe to India to Pakistan to Israel to Saudi Arabia to Mexico to China or Chile - Cross border, Non-resident - dual citizen - out of country investments are all handled with competence and authority. 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