Part II working in Seattle and being factual resident of Canada
Hi David,
You didn't address the whether living outside Canada with a Canadian would allow his wife's immigration status to continue.
Thanks,
_________________________________
david ingram forgot to reply:
Once your wife has officially landed in Canda and has her PR (permanent resident) card, it will remain valid as long as she is living with you in or out of Canada. If the two of you separated, she would have to live in Canada for 24 months (not necessarily consecutive) out of any 60 month period.
This means that under Article IV of the US and another 100 international tax treaties, it is possible to live in Ontario for 5 months (153 days) a year and qualify for Ontario Medical but not be taxable in Canada on your world income because you are in your other country for more than the 183 days. Ontario is the only province or territory that does not require your presecnce for 6 months or six months plus a day to qualify for your medical which means that in every other province, to qualify for medical, you make yourself taxable in Canda on your world income.
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At 12:57 AM 5/24/2007, you wrote:
Please see bottom of message if you wish to unsubscribe.
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Time: 03:01 PM -0400
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.
You didn't address the whether living outside Canada with a Canadian would allow his wife's immigration status to continue.
Thanks,
_________________________________
david ingram forgot to reply:
Once your wife has officially landed in Canda and has her PR (permanent resident) card, it will remain valid as long as she is living with you in or out of Canada. If the two of you separated, she would have to live in Canada for 24 months (not necessarily consecutive) out of any 60 month period.
This means that under Article IV of the US and another 100 international tax treaties, it is possible to live in Ontario for 5 months (153 days) a year and qualify for Ontario Medical but not be taxable in Canada on your world income because you are in your other country for more than the 183 days. Ontario is the only province or territory that does not require your presecnce for 6 months or six months plus a day to qualify for your medical which means that in every other province, to qualify for medical, you make yourself taxable in Canda on your world income.
----------------
At 12:57 AM 5/24/2007, you wrote:
Please see bottom of message if you wish to unsubscribe.
------------------------------------------
Time: 03:01 PM -0400
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!
-------------------------------------------------------------------
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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