taxes under TN status in US

[Steven]

Steven, do you know anyone with loads of untapped capital gains... I don't.

It comes up pretty often, for example there was a lady in the immigration forum recently who was a pianist on EB-1 who ran into that problem. Where it usually is an issue (based on the postings on here) is if you have your own business. If you started it from scratch and it's worth something now there could be a capital gain because you're deemed to have disposed of it at the point of departure.

Especially if you're using a CCPC (which depends on your residency status), you can't really avoid it, it's all laid out on your schedule 125.

[agnelson]

Since about 2004, it is likely for CRA to request almost anyone who lives in US and files a 1040 and a regular T1, to fill an NR73, for the pupose of declaring them "deemed non-resident" which, in effect, "pushes" them out of canada, for the very goal of getting to that deemed dispo tax. It is the very reason that the "deemed non-resident" status was created.

It is very diffuclt now to straddle the 2 countries.

[Steven]

Would filing a 1040NR instead help? Because then you're claiming explicitly to be a non-resident of the US.

[agnelson]

It would help, but, why penalize yourself. there are very few people using CCPC so I would not generalize advice based on that narrow scenario.

Most people want to end their Cdn tax responsibilities, and deemed dispo tax is not as onerous as one might think, as otherwise the tax would be oed later and in US as well.

[Steven]

It would help, but, why penalize yourself. there are very few people using CCPC so I would not generalize advice based on that narrow scenario.

Most people want to end their Cdn tax responsibilities, and deemed dispo tax is not as onerous as one might think, as otherwise the tax would be oed later and in US as well.

I don't think CCPCs are that unusual actually, especially in Alberta because of the oil & gas industry. There are various reasons why it makes sense to separate yourself from an employer and have limited liability.

But anyway, if you have a business, CCPC or not you can be exposed to a significant capital gains hit on the assets of it which is what departure tax is. That was the point I was making.

[agnelson]

If it is not CCPC, you comapny is simply TCP, and are not immediately liable for departure tax.

[Steven]

But you are liable for it. You can pro-rate if you come back.

[agnelson]

Well you are always liable for tax on income.