Hi David: I had a similar question: I live in Ontario, have a hose and two children, university students, which I claimed as dependents on all my Canadian tax returns so far. If my wife and I move to the US to work there and we transfer ownership of the house (as a gift) to the children, cancel all credit cards and bank accounts and so on ... is that going to make us non residents of Canada? We would be coming back to Canada probably every second or third weekend to visit them. P xxxxx --------------------------- david ingram replies: No, If you and your wife move to the US and work there and leave the kids in the old house and do not put it into the kids name, you will only be taxable in the USA because that has become your centre of economic and personal interests AND you will be there more than 183 days, have changed your driver's licences, given up Canadian medical plans and bought American plans, etc. Read 2(a) below - If the house is in your kids name but you and your wife still have your old bedroom, it is still available to you. The article does NOT say anything about "ownership". Lots of Americans have a winter ski cabin or a summer cottage or both in Canada. That does not make a US resident taxable in Canada. -----Original Message----- From: centapede at lists.centa.com [mailto:centapede at lists.centa.com] Sent: Saturday, November 27, 2004 1:09 PM To: CENTAPEDE Subject: ART IV US / Canada Tax Treaty - Does Property affect non-resident status in Canada- Ask a cross-border immigration non-resident income tax expert - David Ingram 's CE-NTA Services in North Vancouver BC Canada on It's Your Money CKBD AM600 My question is: Applicable to both US and Canada QUESTION: We will be going to work in the US and would like to buy a property in Canada in our daughter's name. Will this affect our Canadian non-resident status or have any other tax implications. Your advice is appreciated. ------------------------------------------------------- -------------------- david ingram replies: Article IV of the US / Canada Income Tax Convention reads as follows: Article IV - Fiscal Domicile - (it is the same number in most treaties) For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is liable to taxation therein by reason of that person's domicile, residence, citizenship, place of management, place of incorporation or any other criterion of a similar nature, but in the case of an estate or trust, only to the extent that income derived by the estate or trust is liable to tax in that State, either in its hands or in the hands of its beneficiaries. For the purposes of this paragraph, a person who is not a resident of Canada under this paragraph and who is a United States citizen or alien admitted to the United States for permanent residence (a "green card" holder) is a resident of the United States only if the individual has a substantial presence, permanent home or habitual abode in the United states and that individual's personal and economic relations are closer to the United states than any other third State. The term "resident" of a Contracting State is understood to include: (a) the Government of that State or a political subdivision or local authority thereof or any agency or instrumentality of any such government, subdivision or authority, and (b) (i) A trust, organization or other arrangement that is operated exclusively to administer or provide pension, retirement or employee benefits, and (ii) A not-for-profit organization that was constituted in that State, and that is, by reason of its nature as such, generally exempt from income taxation in that State. 2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: (a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests); (b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; (c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; (d) if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. ---- Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Dundee Wealth Management and I, David Ingram will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com Local calls are taken at (604) 280-0600 and Long Distance calls are taken at 1( 866) 778-0600 I do not know how far the LD line reaches. ========================================= This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. 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