Canadian Full-Timers

SabreCanuck wrote:

sue.t wrote:
According to a 2014 article from Business News Network being in the U.S. or out of Canada too long can result in the following:

1. Banned from travel to U.S. if unlawfully present. Canadians who remain in the U.S. for more than 183 days in a rolling 12-month period risk being deemed unlawfully present, the consequences of which are: a) a 3-year travel ban if unlawfully present for between 183 and 365 days; and b) a 10-year travel ban if unlawfully present for more than 365 days.

2. Liability for U.S. income tax on worldwide income. The U.S. taxes American citizens and U.S. residents on their worldwide income. If the snowbird is present in the U.S. for too many days he risks becoming deemed a U.S. resident and therefore subject to tax on his worldwide income.

3. Liability for U.S. estate tax on fair market value of worldwide assets. The U.S. also taxes U.S. citizens and U.S. residents on the fair market value of their worldwide assets at death. Unfortunately the definition of U.S. resident for estate tax is fundamentally different than the definition for U.S. income tax purposes. The result is that the heirs of the uninformed snowbird can find their inheritance subject to the U.S. estate tax.

4. Liability for Canadian departure tax. Canada taxes its residents on their worldwide income. Once a Canadian resident is no longer a resident he is deemed to have disposed all of his assets (subject to exceptions), recognize the gain on those assets, and pay tax on that gain. Whether an individual is no longer a resident is a facts and circumstances test; however, a big factor in that analysis is day count. Therefore, the snowbird who spends too much time in the U.S. risks a nasty Canadian tax surprise.

5. Loss of provincial health care. Canadian residents are entitled to participate in provincial health services. Once an individual is no longer a resident of the particular province, he loses this entitlement. Of course, the rules for "residency" in the health care context are different than those discussed above.

Thank you for this direct answer to my question.

:)

Although an interesting summary it is definitely not an official document. Number 4 for example, Canadians routinely maintain their residency while travelling for extensive periods around the world. It also seems to imply that a Canadian who spends too much time in the US specifically somehow risks their residency of Canada questioned. If you live in Canada, house, utilities, insurance, banking etc, there is no question of your residency. You may simply be on an extended trip or education in another country or countries. Interesting article but not something you want to "take to the bank" so to speak.