US-Canadian Tax for Permanent Resident - HELP!!!

[jazzly 3]

So, I postponed my POE yesterday after reading the links below whole day. I am still confused ( head is spinning) and not reaching a point where I can make decision. I don't know if someone can help me with this.

My situation is that I have interviews for the job this week (on phone) and I am sure I will get one of those. When I start my job in US is not sure. It could be begining of Jan or Feb.

I also have to sell my house in Canada, which will take some time. I DO NOT want to pay 25% non-resident tax on this house.

I want to deal with US-Canada tax in one tax year only, so I want to wait till January to activate my account.

But if due to the result of job interviews, I have to activate my IR1 visa right away (employer's requirement ofcourse), but the job in US doesn't start till Feb 2013, and I continue my Canadian job till then, how I am going to file taxes for year 2012 and year after fro 2013.

Can I show $0 income to IRS for this year and get Foreign Earned Income Exclusion for my Canadian income? While fully complaint with CRA tax filing in Canada.

Should I do the same for 2013 showing FEIE for the part I earned in Canada?

Does a person become non-resident of Canada automatically, if he obtains a Green Card? Or is it after I sell my house and close any investment account? I want to keep my chequing account and at least one Canadian credit card.

Leaving Canada (emigrants)

http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/lvng-eng.html

Residency - Individuals

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/rsdncy-eng.html

Foreign Account Tax Compliance Act (FATCA)

http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-(FATCA)

Disposing of or acquiring certain Canadian property

http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/dsp/menu-eng.html

Taxation of Resident Aliens

http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Resident-Aliens

Foreign Earned Income Exclusion

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

CONVENTION BETWEEN CANADA AND THE UNITED STATES OF AMERICA

http://www.fin.gc.ca/treaties-conventions/USA_-eng.asp

Edited November 25, 2012 by jazzly

[Flames9_RN 359]

http://forums.serbinski.com/index.php?sid=52287a1a4d84762744aa32f70d906519 Best to ask there --and do a search--as the dude that answers the questions (agnelson) can be a bit grumpy,lol

[Krikit 1,165]

I also have to sell my house in Canada, which will take some time. I DO NOT want to pay 25% non-resident tax on this house.

Go back to my two posts in your last thread. I've already answered this question.

[jazzly 3]

Thanks Krikit.

I think I know for sure that the moment I have stamp on POE I become a deemed non-resident of Canada according to this link. I have spent now 18 hours reading sites and forms.

http://www.cra-arc.gc.ca/E/pub/tg/t4131/t4131-e.html#P170_16551

The same rules apply as non-resident Canadian in this case. one thing however not clear on the CRA site is the selling house after you become non-resident by acquiring resident to a country which has tax treaty with Canada, US in my case. Do I have 1 year to sell my primary property as I read on this forum somewhere, or I should be selling my house, moving all my money to US, leaving on RRSP and then move. Who has 2 months to do all this? There should be a time frame for people in transition There is no grace period ?

[Krikit 1,165]

Like I said..... for tax purposes.... there will be no capital gains taxes as a non-resident if the house was your primary residence up until the time of your departure. Speak to the lawyer who will be handling the closing. Perhaps they will be able to explain it better than I.

[jazzly 3]

up until the departure? What does that mean? Does it mean when I activate my visa, or when I move their permenanetly in a month or so?

[Krikit 1,165]

up until the departure? What does that mean? Does it mean when I activate my visa, or when I move their permenanetly in a month or so?

Up until your departure from your home and Canada. Your visa is already "active". It became "active" when they issued it. When you use it at the POE they will endorse it and then it becomes null and void. The moment you request to have it endorsed you are declaring your intention to move permanently, so they are one and the same.