Each year I help over 500 clients file their Canadian and US tax returns as well as plan for both their Canadian and US investment accounts. I also regularly help new US clients plan for their move to Canada.
I left Canada (XXXXXX) about 9 years ago (in XX) and moved to California, where I now live. When I left Canada, I filed my Cdn taxes for the last year I resided in Canada (I’m not sure if my last Cdn return included US income from late Oct-Dec 31 of the year I left Cda/arrived in the US) and I did not file anything else. I now understand that Canadians cutting residential ties and moving to the US need to file something with the Canada Revenue Agency?
I have not earned any Canadian source income since leaving Cda and thus have not filed a Cdn tax return since leaving. When I left Canada I believe that I had no assets that fall under the deemed disposition rule. To confirm, the deemed disposition rule EXCLUDES residential real estate and cars. I’m concerned because I may not have filed any required tax paperwork with the Canada Revenue Agency when I left Canada. I owned residential real estate in Ontario as a joint owner when I left Cda, and continue to do so (one piece of property).
Currently, I have US (California) employment income, as well as a US (California) single member LLC. I’m thinking of doing some independent contractor work for a Canadian company (located in Ontario) and that’s why I’m contacting you. If I file a future Cdn tax return for my Canadian independent contractor work income as a non-resident of Canada, will the Canada Revenue Agency look up my “file” and ask about why I didn’t file required paperwork when I left Canada (if any)? Is there a minimum amount of Cdn income that I need to hit before I’m required to file a Cdn tax return?
Please let me know what you think…thank you very much!
You should be ok as long as you filed a final return with CRA when you left and included a “departure date” on your final return.
Has the Ontario property been earning any rental income since you left? If so I hope you’ve been filing s.216 returns.
Give me a call and we can chat for a few minutes about your tax situation.
Phil Hogan, CA