Hi everyone, I’ve being doing a lot of research on this forum but still uncertain of what my best options are. I just received my U.S. permanent residency from consular processing. My wife is a U.S. citizen. I was planning to move in the US permanently soon in October.
I sold my house and I’m still working in Canada and renting a space now. I used the Home Buyer’s Plan for financing my home that I have to buy back in my RSP (still 10 yrs to go)
My question is: Should I wait after the current tax year to move in the U.S permanently to avoid been charged the full amount of the Home buyer’s plan as I will be considered a non-resident from CRA?
That will add $20k on top of my CDN revenue.
I still have ties to Canada in a sense since I have a rent, a lease car, driver’s license, medical health card, bank account, RIF, etc and I have worked and stayed here for the first 9 months of the year.
Is it safe to say that I can move to the U.S permanently for the remaining of this year and avoid tax headache?
Should I wait on Jan 1st 2017?
Thanks for the advises!
Should I wait before moving?
Moderator: Mark T Serbinski CA CPA
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vincebouchard
- Posts: 5
- Joined: Fri Aug 26, 2016 9:56 am
- Location: Ottawa
First, ensure that by delaying your move you are not jeopardizing your Green card. I'm not sure how soon after you get GC that you MUST move.
Remember that regardless of when you move, you WILL have to either pay back the HBP within 60 days or add the remaining balance to your income on your departure return. I suppose if you waited until after jan 01 to move to US, you would delay the tax until spring 2018, instead of spring 2017, assuming you aren't planning to pay it back. the tax rate might be a little lower for 2017 as well, since you will have little other income.
The ties you mention are minor once you move. As soon as you move to US, you will be considered a Cdn non-resident for tax purposes, and that will be your departure date.
I would suggest that as long as you are working in Canada, and there is no job for you in US, you would stay until after the new year.
Remember though, that your GC means that for 2016 you MUST file a return with IRS as if you moved there (assuming you will go to US to visit sometime in 2016), even if you haven't officially moved. lots of info on filing for 1st year in US on this forum.
Remember that regardless of when you move, you WILL have to either pay back the HBP within 60 days or add the remaining balance to your income on your departure return. I suppose if you waited until after jan 01 to move to US, you would delay the tax until spring 2018, instead of spring 2017, assuming you aren't planning to pay it back. the tax rate might be a little lower for 2017 as well, since you will have little other income.
The ties you mention are minor once you move. As soon as you move to US, you will be considered a Cdn non-resident for tax purposes, and that will be your departure date.
I would suggest that as long as you are working in Canada, and there is no job for you in US, you would stay until after the new year.
Remember though, that your GC means that for 2016 you MUST file a return with IRS as if you moved there (assuming you will go to US to visit sometime in 2016), even if you haven't officially moved. lots of info on filing for 1st year in US on this forum.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 