TN Visa - Tax implications

Hi,

I am looking for advice on taxes. Here is my situation:

I will be working in California on a TN visa. My wife will be coming on a TD visa.

My questions are as follows:

1) Can I remain a resident of Canada by keeping investment or bank accounts, belonging to organizations etc? None of my dependents or myself will live in Canada for 6 months of the year. The reason I ask is the TFSA contributions grow only if you are a Canadian resident, and I would like to take advantage of TFSAs if I can.

2) What are the major differences between being a Canadian resident vs non-resident? I assume I would not have to pay more tax than the greater of the two tax rates in any case. Are there any other considerations to take into account?

3) Is it true that I can not claim any deductions for my spouse while she is on a TD visa?

Thanks a lot. If you have any other general advice on things to consider before our move I would appreciate it. I will be getting a tax accountant for my first year of taxes in the US but I would like to ensure I do everything right before leaving as well.

1. No. You will be considered non-resident when you leave. Minor ties in canada are not sufficient to keep residential status. CRA will in effect push you out once you demonstrate that you are living in US. Your TFSA will continue to grow, you just won't be allowed to contribute. Besides, you will be considered US resident, and TFSA is taxable in US every year. You will wish you had never got TFSA.

2. No Cdn tax on foreign income. Flat Cdn tax on most Cdn-source income, rather than graduated.

3. This is false, you and your spouse will be treated exactly like your neighbours in terms of tax. You will both be US tax residents.