who do we pay taxes to? US, CAN, or both?


My wife is a Canadian living in Canada, I am American living 6-7 months in Canada.
I own a US sub s corp with an office in the States. We also own a house
together in Canada and the US.

david ingram replies:

As described, you are taxable in Canada on your world income by virtue of
Article IV of the US / Canada Income Tax Treaty.

If you were in the US 7 clear months and your wife was in Canada for six
months and a day, you would not be taxable in Canada and your wife would not
technically be taxable in the USA although it would likely be beneficial to
you both for you to file a US joint return anyway. This assumes that she
does not have a green card.

Canada would call you a factual resident where you would have to report your
world income but would exempt all US income on Article IV of the US /Canada
Tax treaty which would now work in your favour. You would NOT have applied
for registration under the provincial health plan in the province where your
wife resides.

This was a quick answer, you REALLY need to consult with a competent US /
Canadian Tax Consultant.

I am available in person or by phone for a fee of $400 Canadian per year
plus GST if in Canada and $400 with no GST if you are in the US when the
phone call is made.

We also look after your kind of return by mail, fax, email or courier.


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