QUESTION:
I am a Canadian with an L -1 A inter-company transfer VISA and have sold everything and have moved to the USA. I have purchased a home in Texas where I am working/residing and my daughter attends school. I am being paid and taxed at source in US dollars. Intention is to stay permanently and obtain green card. In the meantime, will I have any tax obligations ?
--------------------------------------------------------------------------------------------------------------
david ingram replies:
As described, you have no further tax obligations to Canada other than filing a final departing Canada return.
Your final Canadian return should show the date of departure and the exemption amounts on Schedule 1 and 428 should have the amounts pro-rated by the number of days you were physically in Canada. I.e number of days in Canada divided by 365 times the amount on line 300 as an example.
Everything you own is considered to have been sold at the time of departure and if there is a capital gains, there will be departure tax to pay or you will have to post security WITH THE CRA.
If you had left a summer cabin or stock portfolio or other assets worth more than $25,000 behind, you would need to file form 1116
http://www.cra-arc.gc.ca/E/pbg/tf/t1161/t1161-06e.pdf
Complete this form T1161 if you ceased to be a resident of Canada at any time in-----------------------------------------------------------------------------------------------------
the year and the fair market value of all the properties you owned when you
left Canada was more than $25,000, not including the following properties:
i) cash (including bank deposits);
ii) pension plans, annuities, registered retirement savings plans, registered
retirement income funds, retirement compensation arrangements, employee
benefit plans, and certain other deferred benefit plans;
iii) property you owned when you last became a resident of Canada, or
property you inherited after you last became a resident of Canada, if you
were a resident of Canada for 60 months or less during the 10-year period
before you emigrated and the property is not taxable Canadian property; and
iv) any item of personal-use property (such as your household effects,
clothing, cars, collectibles) that has a fair market value of less than
$10,000.
Attach a completed copy of Form T1161 to your income tax return. File your
return by the filing due date. The penalty for failing to file Form T1161 by
the due date is $25 a day. There is a minimum penalty of $100, and a maximum
penalty of $2,500.
List of properties
List below all properties and their fair market value, and indicate either
(C) for Canadian or (F) for foreign properties (outside of Canada), that you
owned on the date you ceased to be resident of Canada.
Property includes shares (both public and private), bonds, debentures,
promissory notes, treasury bills, interests in trusts, interests in
partnerships, personal-use property, business property (including inventory),
real estate, and security option benefits.
Do not list any property described in (i) to (iv) above. If you need more
space, attach a separate sheet of paper.
Comments (0)
CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/20071105001236901