Client Stories Cross Border #1: Moving to US for 1-2 Years, TFSA? Residency? "Final Tax Return"?

📩 Client Stories Cross Border #1!

Today, we're looking at a real email from a client!

📩 THE EMAIL 📩
"Context about my situation:
I am moving to the US for work for longer than 183 days as a Canadian Citizen which would make me a US resident alien by the IRS and a Non-Resident of Canada by the CRA
I will be leaving Canada in early September
I plan to stay for 1-2 years — will re-evaluate after a year to see if I should stay adjust the duration of my stay working in the US
I only rent so no home ownership and will rent in US as well
I will keep my Canadian bank and credit card accounts
I will keep my RRSP
I will keep my Canadian Driver’s License
I will keep my Canadian Passport
Not married/common-law
No dependents in Canada
Not a part of any membership/club based activities
I believe I have OHIP until I become a non-resident of Canada

Questions:
1. Whether or not I should close my TFSA account (less than $20k CAD) to ease the tax filing difficulties. Please list pros and cons, focusing on things like cost of filing in either scenario and what type of documents are needed as well as how to proceed in either case. For example, if I decide to keep my TFSA open, should I halt any further transactions?
2. How will the CRA determine Non-Residency after I move? I plan on filing CRA Form NR73 to help determine my residency status.
3. When will I have to file my "final tax return"? Is it before I leave for the US or after I become a Non-resident of Canada?

Please let me know if you can help and if I need to provide any further information, thanks!"

🚩 Issue #1: What to do with TFSA
🚩 Issue #2: How will Canada Determine my Residency
🚩 Issue #3: When/How do I file my "final tax return"

🔑 Solution #1: Close your TFSA
🔑 Solution #2: If You're Not Sure, File Form NR73
🔑 Solution #3: Get Cross-Border CPA Help for Year 1
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