QUESTION:
Hello Tax Experts
I am a Canadian going down from Vancouver to Seattle to work on an L1. I have been transfered to the company's head office.
I am also brining my wife with me whom I met on a cruise ship. She is xxxxxxxxx and has her Canadian immigration papers in process.
I have been told that to claim non residency would cancel my wife's application so our intention is to keep our residency status which I imagine would be easy as the visa is really only for 3 years anyway.
We will rent out our apartment via a management company but I'm wondering how much difference there would be in taxes by doing things this way. If I was making a nice round number like 100K per year US... is it easy to say what the difference would be remaining a resident vs becoming non-resident?
I was always told that if I was in a 30% bracket in the states and a 33% bracket in Canada, I would owe Canada 3% at the end of the year by remaining a Canadian resident.
Is that correct?
Thanks for any information you can give me!
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david ingram replies:
Without paying any attention to the rental or cost of living, as a resident, you would owe Canada $6,600 or so more if you earned $100,000 in Seattle and this was converted to $110,000 Caandian.
This assumes a full year of employment and that you earned all of the income and your wife earned nothing.
The advantage of being a factual resident is that you could avoid capital gains tax on your apartment.
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CEN-TA Cross Border Services - Tax, Visas, Immigration
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