I posted this question previously on a different forum, but it has been recommended that i move it here since it is more suitable, and I agree with it.
After browsing this forum for awhile I think I have a reasonable understanding of the situation, but the lawyer keeps pushing some complicated paperwork on my wife so I would like some clarification from the experts here.
I have been working in USA since Dec. on TN-1 visa and live in a rental apartment, but my wife stayed back in Canada in our house with the all household. I still have canadian driving license, health care card, all bank accounts: so I believe I still considered to be a canadian resident. Now we found a buyer for our house and my wife is going to sell it and stay with our friends for some time. I don't see how we would be a subject of 25% money withhold that a lawyer is threatening my wife with. It should be as a straightforward process as for any canadian resident, which we formally are at least at the moment of the sale of house. Is there anything i am missing? BTW if anybody went through the sale of the house recently how complicated is a paperwork for a sale of the house and what is going rate for it?
As a side note: is there a chance I can be considered a non-resident in this situation? I would rather prefer it, so I don't have to pay taxes in Canada.
Thank you for your help. Alex
Selling house in Canada
Moderator: Mark T Serbinski CA CPA
As I answered on other side, even IF you are non-resident, the paperwork is really simple, but has to be prepared before sale. You will have no withholding. Look for form T2062A, I believe.
To be considered NR, you wold have had to stay in US and not visit family since you left, but rather have them visit you, if at all. Only this would make you NR since you went to work.
You would alos have shown that you live in US by getting state DL (you had 30 days legally, so get on this), etc.
But in either case, your spouse is CLEARLY Cdn resident, so her portion of the house doesn't even have to think about NR tax.
To be considered NR, you wold have had to stay in US and not visit family since you left, but rather have them visit you, if at all. Only this would make you NR since you went to work.
You would alos have shown that you live in US by getting state DL (you had 30 days legally, so get on this), etc.
But in either case, your spouse is CLEARLY Cdn resident, so her portion of the house doesn't even have to think about NR tax.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 