Tax Filing Requirements

Canadians who move to the U.S. are no longer subject to tax on their worldwide income to Canada. A final Canadian tax return should be filed by April 30 in the year following departure. A Canadian may still need to file a Canadian return if he/she still has Canadian source income (employment, rental income, etc.).

On the U.S. side, once a Canadian has moved to the U.S., he/she is subject to tax on their worldwide income. A U.S. tax return (Form 1040) must be filed to the IRS by April 15 each year. It is important to note that the IRS has specific reporting requirements for those who maintain foreign assets in Canada.

Canadian rental properties: An investment for Americans

This blog discusses how American buyers of Canadian rental properties need to be aware of tax reporting obligations in Canada and ensure they apply the foreign tax credit in the most tax efficient way.

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