New USA PR - question about CAN/USA filing + home sale

anthello · Post by **anthello** » Fri Jan 29, 2016 4:20 pm

Hi,
Thank you in advance to anyone who can validate or correct my approach based on this scenario:
--I'm a Canadian citizen who married an American
--I closed sale of my primary residence in Canada on June 4; moved to USA June 5
--I was employed full-time in Canada until June 4; then in USA beginning June 8
--I have no other investments besides RRSPs
--My spouse and I are renting in NY; no kids

approach:
--file nothing for my condo sale since there shouldn't be capital gains implications
--file an easy peasy resident return with the IRS
--file a Resident (???) Return in Canada using my T4 and a few slips. This is where I go back and forth. I was a resident for fewer than 183 days but when I was there, I was fully there and working in a normal job

???
Thanks!
A

anthello · Post by **anthello** » Fri Jan 29, 2016 4:21 pm

Also, sorry, of course I got my green card before we moved.

nelsona · Post by **nelsona** » Fri Jan 29, 2016 4:42 pm

Your "approach" will depend on how you choose to file in US.

For Canada, the filing is a simple Emigrant departure return with departure date june 5. days in Canada are not important when leaving Canada. You are an emigrant for the year.

For US, you will have the choice of filing joint FULL year 1040 with your spouse or dual-status filing separately.
Dual status may appear simpler, but you will be severely hit on US taxes since you cannot file jointly and will BOTH pay tax at the married filing separate rate.

Most in your situation file a normal joint return for the whole year. You get to exempt your Cdn wages from the first part of the year. The sale of your condo is also exempt. this gets you and your spouse the preferential joint tax rate. You have the added benefit of being able to do these taxes rather simply using any off the shelf software.