Tax and Residency in Canada
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- Опубліковано 8 лют 2025
- This video is on tax and residency. It covers 4 main tax and residency questions:
2:14 #1 -- If you move... when do you stop being resident of Canada?
13:12 #2 -- How do close calls on residency get decided?
18:00 #3 -- If you stay too long in Canada... when do you have to start paying tax?
22:01 #4 -- Can you be resident of two countries at the same time? If so, do you pay tax twice?
If you need help on a tax issue ... send me an email (best) or give me a call.
If you got something out of this video please like and subscribe.
John
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The information you shared in this video is extraordinarily helpful to me. I am a Canadian citizen living in Costa Rica most of the year but maintain virtually all of my secondary indicators in Canada. It’s been difficult to know whether I should be considering myself a Canadian resident or not. I still pay my income tax, bank accounts, credit cards , mailing address, vehicle insurance , Canadian passport etc. And I have a temporary Costa Rican residency . I had been uncertain as to where I stand according to CRA . Your video and the energy you put into making it is greatly appreciated. Thank you, Gracias, Pura Vida
Wow you are a great teacher! you should never stop teaching. Thank you so much
Clearest explanation on establishing residency in Canada. Thanks so much John.
Thx! Appreciate it!
Great video! I found the information on tax treaties to be particularly useful because that is often not covered in videos like this. Even so, I still have unanswered questions on tax treaties. Give me more on that!! A second point - this and other videos like it lean toward people who are trying to escape Canadian taxation. As a pensioner, I want to live abroad but remain a Canadian tax resident (pension income splitting!). That would put quite a different spin on some of your excellent explanations.
Totally clear. I wish I'd had teachers like this.
Thank you for your extremely thorough and clear information on this complex topic, which is so important because it has a major impact on the finances of many people. I've looked all over and spoken to some accountants but this is the best explanation I've come across. Do you do private consultations regarding individual complex tax situation involving both personal and business aspects? Thanks
Really well explained. Thank you. Has anything changed since you produced this video?
Great Video. Thank you very much for sharing this information.
Great video very thorough on complex topics thanks!
very interesting information. thanx for your work
Great video, after countless reads of the CRA publications, and others, nowhere did I come across the clear description of "deemed disposition" . I sold my Florida home in 2019 which I have owned since 2012 and now plan to sell my Canadian home which I've owned since 1991 in 2020. (down sizing) I am now comfortable that there will be no capital gains tax in either case.
Sell the house before you sever ties. The minute you become a non-resident of Canada, your house capital gains will be subject to tax. In other words, Don't wait for your assets to be deemed to be dispositioned because when that happens, you are considered non-resident and you have to pay capital gains when you sell your home.
Thanks for all the information.
Awesome video! Thanks so much!
Very good video, a lot of good info.
Excellent Video !!!
Such a great video thank you
thank you, very useful
If as canadian citizens my wife and I left Canada but kept a home vacant to come back to once a while, can I assume that we will continue paying taxes as factual residents of Canada? Or do I have to still get a ruling from Canada concerning my residency? Basically is it illegal not to file the NR73 form and keep paying our taxes considering we have a vacant home?
We will be staying abroad for 3 or 4 years before we probably come back in the future. Most of our time would be abroad during these years.
Excellent vid. Very helpful.
One thing I found unclear was the use of the word "comprehensive" wrt the statement that the country you move to must have as comprehensive a treatment of your taxes in that country.
If you aren't going there for tax benefits, why are you going to bother to go through the effort of the clean break?
To answer your question. It is not always about getting a tax advantage somewhere else. People move abroad for work, retirement etc. The last thing you want is to file income tax and pay tax in two countries forever.
Clean break will ensure that you do not have any issues with CRA years from now.
great video
Hi John, Must I provide the CRA with proof of an annual residency or permanant residency in another country in order to be considered a non resident? Or could I be considered a non resident just by being on a visitors visa in 2-3 different countries for several years without ever stepping foot in Canada (and of course cutting all ties)?
Let's say I bought a stock at a price of $100 per share while I was not a resident of Canada. On the day I attained Canadian residency, the stock's price fell to $10 per share. Later, as a Canadian resident, I sold this stock at $100 per share. How would Canadian tax laws compute the capital gains tax for this transaction? Although I didn't make any profit from this investment-since I initially purchased the stock at the same price I sold it-it seems that I'd still have to pay $45 per share in capital gains tax. Does this scenario result in an overall financial loss due to taxation, even though there was no net gain from the investment?
What if I am OK paying Canadian tax , if, say I retire in Thailand but maintain most ties to Canada and rent out my house ? Thailand does not tax retirement income or money transfers into the country. What benefit is there to making a clean and total break with Canada if I live in Thailand for several years only ?? Or would CRA levy huge taxes on me and/or fines ? Cant I just move there and file Cdn taxes as normal ?
Do I have to give up my passport as well?
Thank u
Best ever
is selling off ETF's still taxed at only capital gains if you are a non-resident?
John why dont you do tax courses on an education channel in a systematic way. I would subscribe to "courses" you teach for more "advanced topics" like the stuff covered in the in-depth.
Thanks Eric... I appreciate the comment. And not a bad idea. There would be an audience, but not sure it would be large enough to work economically? I would like to keep adding to this channel, but it hasn't been a priority for a while now.
@@JohnMcIlroyTax I mean you could market them as PD courses . If the content is good, like a good look at NAL transactions, anti avoidance provisions, roll overs etc. people will subscribe that are in practice and I can tell you there is a tremendous shortage of advanced tax CE. Most of it is compliance drivel.
I’d be only too happy to help with the course and guess what? I’ll do it just for the experience and knowledge, I don’t want a dime.
The great thing about courses, is that they are constant cash flow
@@EricAlHarb You are persuasive! LOL. Maybe you should take it on yourself? I agree that there is a market for CE stuff. But I am knee deep in a project right now and just don't have the bandwidth.
It's an incredibly informative video. Thank you sir.
Would appreciate if you advise on my status:
- I became a permanent resident three years ago but for personal reasons have not live in Canada yet and have had zero income so far.
- I have spent less than 50 days in Canada every year since 2016.
- I have a house in my home country, have a job there and live there permanently.
- My country has no tax treaty with Canada.
- I have a Canadian bank account (with very limited funds in deposit), credit card that I only use when I'm in Canada, received my driver's license last year and have a health card that I have never used.
- I use a friend's address in Canada to receive my mail but have never lived there.
Based on your video, I assume I'm most probably a deemed non-resident. is that correct? what's my tax liability status? Do I have to pay tax to the CRA?
Many thanks!
Does anyone know what the Deemed Resident Tax Rate is?
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