Canadian returning to Canada after 5 yrs - Tax implications?
#1
Guest
Posts: n/a
Canadian returning to Canada after 5 yrs - Tax implications?
Hi,
My wife and I (both Canadians) have been working in the U.S. for 5+ years
and have cut our tax ties to Canada. We're just now thinking about
returning but are wondering if we return in October, will we get taxed for
the entire 2002 year with RevCan? Or just the couple of months we work in
Canada? We may decide to stick it out here if the tax implications are not
favourable.
Thanks,
Ian
My wife and I (both Canadians) have been working in the U.S. for 5+ years
and have cut our tax ties to Canada. We're just now thinking about
returning but are wondering if we return in October, will we get taxed for
the entire 2002 year with RevCan? Or just the couple of months we work in
Canada? We may decide to stick it out here if the tax implications are not
favourable.
Thanks,
Ian
#2
Guest
Posts: n/a
Re: Canadian returning to Canada after 5 yrs - Tax implications?
> My wife and I (both Canadians) have been working in the U.S. for 5+ years
> and have cut our tax ties to Canada. We're just now thinking about
> returning but are wondering if we return in October, will we get taxed for
> the entire 2002 year with RevCan? Or just the couple of months we work in
> Canada? We may decide to stick it out here if the tax implications are
not
> favourable.
Your worldwide income will only start to be taxed in Canada
from the day that you resume residence. Income earned outside
of Canada, in 2002, prior to that date will not be subject to Canadian
taxes.
S. Gallagher
> and have cut our tax ties to Canada. We're just now thinking about
> returning but are wondering if we return in October, will we get taxed for
> the entire 2002 year with RevCan? Or just the couple of months we work in
> Canada? We may decide to stick it out here if the tax implications are
not
> favourable.
Your worldwide income will only start to be taxed in Canada
from the day that you resume residence. Income earned outside
of Canada, in 2002, prior to that date will not be subject to Canadian
taxes.
S. Gallagher
#3
Guest
Posts: n/a
Re: Canadian returning to Canada after 5 yrs - Tax implications?
"Stephen C. Gallagher" wrote:
> > My wife and I (both Canadians) have been working in the U.S. for 5+ years
> > and have cut our tax ties to Canada. We're just now thinking about
> > returning but are wondering if we return in October, will we get taxed for
> > the entire 2002 year with RevCan? Or just the couple of months we work in
> > Canada? We may decide to stick it out here if the tax implications are
> not
> > favourable.
> Your worldwide income will only start to be taxed in Canada
> from the day that you resume residence. Income earned outside
> of Canada, in 2002, prior to that date will not be subject to Canadian
> taxes.
> S. Gallagher
Also worth noting that any investments you have subject to Capital Gains
can come away tax free by from the day you acquired them until the day
you resume residence in Canada, and only are taxable in Canada on the
increase between the date of entry to the date of sale. (It is wise to
not sell too many significant investments too quickly or the IRS can
take the approach that you left to avoid US taxes.
> > My wife and I (both Canadians) have been working in the U.S. for 5+ years
> > and have cut our tax ties to Canada. We're just now thinking about
> > returning but are wondering if we return in October, will we get taxed for
> > the entire 2002 year with RevCan? Or just the couple of months we work in
> > Canada? We may decide to stick it out here if the tax implications are
> not
> > favourable.
> Your worldwide income will only start to be taxed in Canada
> from the day that you resume residence. Income earned outside
> of Canada, in 2002, prior to that date will not be subject to Canadian
> taxes.
> S. Gallagher
Also worth noting that any investments you have subject to Capital Gains
can come away tax free by from the day you acquired them until the day
you resume residence in Canada, and only are taxable in Canada on the
increase between the date of entry to the date of sale. (It is wise to
not sell too many significant investments too quickly or the IRS can
take the approach that you left to avoid US taxes.
#4
Guest
Posts: n/a
Re: Canadian returning to Canada after 5 yrs - Tax implications?
Thanks everyone! Very helpful. Now if I can just find a good job and an
employer willing to move me.
employer willing to move me.