Loading Website ...

Question:

I found your contact on the internet and have a few questions. I have been living in USA since July 1995. I am a Permanent Resident of USA. I am a Canadian citizen born in Newfoundland. I have filed USA tax returns since moving to USA. Its where I have been living and working since moving here in 1995. I do own Land in Canada, assessed value approximately 45,000.00 in Newfoundland and have been paying my land tax each year. I have not filed a Canadian tax return since leaving Canada. I have not received any Canadian income since my move to USA. If I sell my land do I need to file a Canadian tax return? My final questions are:  If later in life, I decide to return to Canada will I have incurred any tax consequences as a result of living in the USA?

Do I need to be filing a Canadian Tax return each year?  If I become an American Citizen,( I would want to retain my Canadian Citizenship, to allow me the option to move back to Canada), are there tax consequences? Finally, if and when I do move back am I eligible for the Old Age Pension and Canadian Pension? I am currently eligible for the Social Security Pension in the USA.  I’d appreciate any guidance and insight you can provide on these matters.

If you know an immigration lawyer in Canada that could further assist me with my questions; would you please send me the contact information? FYI: I have only made short visits to family in Canada since leaving in 1995 and have had no permanent residence in Canada since my departure.

Answer:

Hi XXXX

Thanks for your email. It would be best if we chatted over the phone regarding your questions above, however I’ll give you some answers to some specific in this email before we speak:

  • Unless the land is generating income you wouldn’t be required to file Canadian tax returns. This is assuming of course that you don’t have any other sources of Canadian income.
  • If the land was sold however you would have some tax filing responsibilities. First, you would need to file a T2062 certificate to obtain clearance from CRA before you could obtain proceeds from the sale of the land. You would need to pay CRA an installment of 25% of the estimated Canadian gain on the property.
  • In the following year you would file a Canadian non-resident tax return (for the year you sold the property) reporting the gain/loss on the property. Note that you would need to file a tax return even if you have a loss on the sale of land.
  • If you were to move to Canada there would be a fair amount of tax issues to consider. I would be best if I could obtain some context about your particular situation before commenting on these tax issues.

Please give me a call at 250-381-2400 and we can discuss the issues above in more detail. I can also give you some referrals to good immigration lawyers in Victoria. Look forward to your call.

Cheers

Phil

Phil Hogan

Leave a Reply

Your email address will not be published. Required fields are marked *

Philip Hogan

Contact Philip Hogan

Contact Me

The information contained in this article is for general use only and should not be viewed as professional advice. Accounting and tax rules and regulations regularly change and individuals should contact a competent professional to obtain accounting and tax advice based on their specific situation.

Phil Hogan

OTHER ARTICLES

More from this Author

Our dynamic Team are always contributing the latest tips and techniques to keep you in the know with all things tax, accounting, and bookkeeping. See more from this author below.

Cross Border Tax NewsletterSign up for our Cross Border Tax Newsletter