American now CN PR taxes question
Feb 8th 2001, 5:13 am
#1
Guest
Posts: n/a
Hello,
I am an American landed in Canada last March, now it's the tax season again only my taxes
seem to be very complicated now. Please if you can offer some advice on this.
I quitted my US job in Feb. 2000 because I was getting ready to land in Canada. I brought
all of my savings with me to Canada. I got a job in June 2000. Now my question are:
1---Do I have to file income taxes to the States for the months I worked before I moved to
Canada and file another income taxes for the months I worked after I got here?
2---I am getting all the tax forms from the States for the interest earned and sell from
the stock, and since I brought all that money with me to Canada, will I be taxed on that
from both countries?
3--Is that true that all the money one brings as a landed PR will not be subject to be
taxed? If not, will the money one brings into Canada as a PR considered an income? And how
will the taxes based upon?
4--When I landed back in March 2000, I sold my house in the States and I made a bit profit
on that but I didn't get the check from my realtor until a week later after I already
landed. The check was put on hold for 30 days and I used that as a down payment for our
new house. Will I be taxed on the base the interest earned or on the base of the amount
while deposited?
Please help me to figure this out or if you can just provide me some websites where I can
find answers to all these questions, I'll be grately appreciate it!
I am an American landed in Canada last March, now it's the tax season again only my taxes
seem to be very complicated now. Please if you can offer some advice on this.
I quitted my US job in Feb. 2000 because I was getting ready to land in Canada. I brought
all of my savings with me to Canada. I got a job in June 2000. Now my question are:
1---Do I have to file income taxes to the States for the months I worked before I moved to
Canada and file another income taxes for the months I worked after I got here?
2---I am getting all the tax forms from the States for the interest earned and sell from
the stock, and since I brought all that money with me to Canada, will I be taxed on that
from both countries?
3--Is that true that all the money one brings as a landed PR will not be subject to be
taxed? If not, will the money one brings into Canada as a PR considered an income? And how
will the taxes based upon?
4--When I landed back in March 2000, I sold my house in the States and I made a bit profit
on that but I didn't get the check from my realtor until a week later after I already
landed. The check was put on hold for 30 days and I used that as a down payment for our
new house. Will I be taxed on the base the interest earned or on the base of the amount
while deposited?
Please help me to figure this out or if you can just provide me some websites where I can
find answers to all these questions, I'll be grately appreciate it!
Feb 8th 2001, 11:58 am
#2
Guest
Posts: n/a
I am an American landed in Canada last March, now it's the tax season
> again only my taxes seem to be very complicated now. Please if you can offer some advice
> on this.
The advice that you get here will be very general in nature. You should definitely
consider using a tax preparation specialist who is experienced in handling tax returns for
Canada and for the United States. The tax rules are complicated, even more so because you
are dealing with two tax systems.
>
> I quitted my US job in Feb. 2000 because I was getting ready to land in Canada. I
> brought all of my savings with me to Canada. I got a job in June 2000. Now my
> question are:
>
> 1---Do I have to file income taxes to the States for the months I worked before I moved
> to Canada and file another income taxes for the months I worked after I got here?
You file one US federal tax return for the entire year. On this return you must include
your income for the entire year, including the income that you earned in Canada. In fact,
you have to file a US tax return every year, even if you don't live in the US (assuming
you meet the filing requirements).
If your former state of residence has an income tax, you will have to file a state income
tax return as well, although that state will, probably, only tax you on the income earned
before you moved to Canada. There is at least one state that I know of (Virginia), that
does not stop considering you to be a resident for tax purposes, unless and until you
establish residence in another US state. Moving to another country doesn't count. Other
than that, most states will stop viewing you as a resident for tax purposes when you move
abroad, and you meet their other requirements for non-resident status.
You must also file a Canadian tax return, but only for the months that you resided in
Canada. On that return you must include your worldwide income for those months.
> 2---I am getting all the tax forms from the States for the interest earned and sell from
> the stock, and since I brought all that money with me to Canada, will I be taxed on that
> from both countries?
You only have to declare interest and stock sales to Canada if they were earned AFTER
you established residence. In the case of capital gains, you are usually taxed on the
amount of gain that was earned between the date you established residence and the date
of the sale.
>
> 3--Is that true that all the money one brings as a landed PR will not be subject to
> be taxed?
Any money that you had before you became a resident is not taxed in Canada. It will not be
taxed if you bring it into the country.
> If not, will the money one brings into Canada as a PR considered an income?
Only if the money was earned by you after you established residency.
> 4--When I landed back in March 2000, I sold my house in the States and I made a bit
> profit on that but I didn't get the check from my realtor until a week later after I
> already landed.
> The check was put on hold for 30 days and I used that as a down payment for our new
> house. Will I be taxed on the base the interest earned or on the base of the amount
> while deposited?
If the sale took place before you established residence, it is not taxable in Canada. The
interest earned after you established residence must be declared to Canada.
If the sale took place after you established residence, then you would have to declare the
amount of the sale based on the difference between the sale price on the sale date and the
value of the house on the day you established residence. This value would most likely be
nil since you established residence and sold your house all within the same month.
Stephen Gallagher
> again only my taxes seem to be very complicated now. Please if you can offer some advice
> on this.
The advice that you get here will be very general in nature. You should definitely
consider using a tax preparation specialist who is experienced in handling tax returns for
Canada and for the United States. The tax rules are complicated, even more so because you
are dealing with two tax systems.
>
> I quitted my US job in Feb. 2000 because I was getting ready to land in Canada. I
> brought all of my savings with me to Canada. I got a job in June 2000. Now my
> question are:
>
> 1---Do I have to file income taxes to the States for the months I worked before I moved
> to Canada and file another income taxes for the months I worked after I got here?
You file one US federal tax return for the entire year. On this return you must include
your income for the entire year, including the income that you earned in Canada. In fact,
you have to file a US tax return every year, even if you don't live in the US (assuming
you meet the filing requirements).
If your former state of residence has an income tax, you will have to file a state income
tax return as well, although that state will, probably, only tax you on the income earned
before you moved to Canada. There is at least one state that I know of (Virginia), that
does not stop considering you to be a resident for tax purposes, unless and until you
establish residence in another US state. Moving to another country doesn't count. Other
than that, most states will stop viewing you as a resident for tax purposes when you move
abroad, and you meet their other requirements for non-resident status.
You must also file a Canadian tax return, but only for the months that you resided in
Canada. On that return you must include your worldwide income for those months.
> 2---I am getting all the tax forms from the States for the interest earned and sell from
> the stock, and since I brought all that money with me to Canada, will I be taxed on that
> from both countries?
You only have to declare interest and stock sales to Canada if they were earned AFTER
you established residence. In the case of capital gains, you are usually taxed on the
amount of gain that was earned between the date you established residence and the date
of the sale.
>
> 3--Is that true that all the money one brings as a landed PR will not be subject to
> be taxed?
Any money that you had before you became a resident is not taxed in Canada. It will not be
taxed if you bring it into the country.
> If not, will the money one brings into Canada as a PR considered an income?
Only if the money was earned by you after you established residency.
> 4--When I landed back in March 2000, I sold my house in the States and I made a bit
> profit on that but I didn't get the check from my realtor until a week later after I
> already landed.
> The check was put on hold for 30 days and I used that as a down payment for our new
> house. Will I be taxed on the base the interest earned or on the base of the amount
> while deposited?
If the sale took place before you established residence, it is not taxable in Canada. The
interest earned after you established residence must be declared to Canada.
If the sale took place after you established residence, then you would have to declare the
amount of the sale based on the difference between the sale price on the sale date and the
value of the house on the day you established residence. This value would most likely be
nil since you established residence and sold your house all within the same month.
Stephen Gallagher
