Snowbirds in the USA - 1040NR - 8840 - Substantial Presence Test.

QUESTION: I am planning on relocating to USA in the near future. I will not
work in USA but I do have retirement income from Canada, that I would use to
live on in the USA. I only plan to live not work in USA, are their going to
be any tax concerns for me.
 I realize I have to file a Canadian tax return can I be taxed again in USA
on this income.

 david ingram replies:

 You can NOT just retire to the USA.   You can spend up to 6 months a
 year there as a visitor IF you have a home ready for you at a moment's
 notice in Canada. That means you can NOT rent your home ouot to a stuent
 or visiting professor while you go south.  It has to be ready for you to
 go home to if you get turned back at the border.

 In addition, to keep your provincial or territorial medical plan alive,
 you have to be in your home province or territory for more than 183 days
 a year with the exception of Ontario which only requires you to be there
 more than 153 days for some reason or the other.

 Under the substantial Presence test, if you are in the USA more than 120
 days a year three years in a row or 140 days a year two in a row, you
 will need to file a 1040NR US tax return and claim a closer connection
 to Canada on form 8840.

 Read the April 1994 newsletter in the top left hand box at
 for more information.  The numbers are a little out of date but the
 concept is exact.