usc planning to move to canada to retire

jalways747 · Post by **jalways747** » Thu Feb 02, 2012 4:01 pm

we are planning to move to canada, mid 2012.any tax, financial tips ? anything we need to do in particular like file forms etc, info anyone. most assets like 401k + roth + rental home in us

nelsona · Post by **nelsona** » Thu Feb 02, 2012 5:13 pm

Consider moving all IRA/401(k) funds to Roth/Roth401(k) BEFORE leaving US. It will cost you US tax now, but will make all those funds tax-free in US and canada forever.

For rental, make sure you have a good market value for property for the departure date, as future Cdn taxation will be based on that value.

Selll any losing investment positions before leaving as well.

jalways747 · Post by **jalways747** » Fri Feb 03, 2012 2:03 pm

thanks. sorry some more questions
so i sell us property whilst in canada, i pay us taxes + taxes in can on gains after step up ?
i also have canada rental property ?
how is the cost basis worked out ? bought them after becoming us resident ?

nelsona · Post by **nelsona** » Sat Feb 04, 2012 9:34 am

Cdn property cost basis will be the dsame for both US and Canada: origian; cost basis. There is no step up on moving to canada for Cdn real properrty, sicne it was always taxable.

jalways747 · Post by **jalways747** » Wed Feb 08, 2012 1:39 pm

property in canada is in my spouse name, so when we move there and make it in joint name , is there any tax consequences in canada/us ? what is the cost basis for property bought in canada before becoming non resident ? and then becoming resident again ?

nelsona · Post by **nelsona** » Wed Feb 08, 2012 6:44 pm

As I said, real estae cost basis doesn;t change regardless of leaving or returning to Canada: it is the regukar cost basis as if you never moved.