Added 2/27/2010
Ask a Tax Expert with David Ingram

I am Canadian citizen working in US on TN visa. I moved to US in Oct 2008, leaving behind my primary residence which I rented for few months and then sold during the Year 2009. I have Canadian RRSP account and checking accounts. I work on W-2 and my employer deduct all my taxes. I had rental income from Canada and also had some dividend income of a corporation I owned. I worked in US for the full year 2009 and rented apartment, bought a car and furniture etc, I have no immediate plans to return to Canada. 1. Which country will treat me as resident for tax purposes? It seems like US will treat me as resident as I lived here for more than 183 days and also had US income, home, Driver License etc. At the same time I had home and Bank accounts in Canada, but I believe there will be a rule for this scenario to determine my residency status. 2. Where should I file taxes first, US or Canada? What forms do I need to submit? Where should I report worldwide income? Where should I claim tax treaty benefit? I red this on your blog regarding a similar issue. You suggested to someone : "Report all of your US income on the T1 and then deduct it all on line 256 of the return under Article IV of the US - Canada Income Tax Convention (treaty)." Does it apply in my case? 3. Do I need to declare any gain for the sale of my house in US return? I read that for the US, the house is tax free up to $250,000 of profit from the day you landed in the US.

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