Move is 3 weeks away. Panic attack. Help!!!

Expatriate · Post by **Expatriate** » Fri Apr 20, 2012 10:36 pm

I'll be moving to the US in about 3 weeks time with my wife and 2 children for work. I have an H1B and my family will have their H4s. We thought everything was set, but got some news today that has us questioning everything.

Basically we are selling our home here with the intent of transfering the money from the sale over to a US bank account to cover the down payment on a property in the US. Our lawyer handling the closing here called us today to let us know that because of Ontario residency laws, if we don't provide a Canadian forwarding address, then 33% of our sale price will be witheld, possibly for months, and will require additional paperwork and costs to release funds.

In addition to worrying about covering the cost on the new home, we are now wondering what we can expect come tax time. We'll be down to 1 income, as least at the start, so how much can Canada demand from the sale of our house.

Doing internet searches isn't helping. We just read some very confusing information about withholding tax and deemed dispositions of property and are wondering if money is going to be skimmed off when we transfer our bank savings over to the US account we plan to set up. We are on a very tight budget and are panicking that we will be going into debt in trying to make this move and pay the Canadian government what they demand.

Of course, the lawyer leaves a viocemail message this afternoon, and won't be available to clear up the matter until Monday, so we have the entire weekend to freak out about what's going to happen to us. A clear explanation of what we can realistically expect would be greatly appreciated.

nelsona · Post by **nelsona** » Fri Apr 20, 2012 11:24 pm

Your lawyer is incompetant.

First, you are still resident until you actually leave.

secod, even if you have left, you are selling your principal residnce, and all your dumbass lawyer has to do is fill in a form or two and nothing will be withheld.

http://www.cra-arc.gc.ca/tx/nnrsdnts/cm ... u-eng.html

Form T2062

Expatriate · Post by **Expatriate** » Sat Apr 21, 2012 7:34 am

So in moving household belongings, transferring bank accounts, etc., should we expect any taxation/withholding?

nelsona · Post by **nelsona** » Sat Apr 21, 2012 9:33 am

tax on Moving belongings? What did your lawyer tell you?! There is no moving tax. US cusroms allows you to bring your belongings duty free.

Expatriate · Post by **Expatriate** » Sat Apr 21, 2012 10:41 am

Not the lawyer on that one. Something random I stumbled upon while looking into the property sale that was poorly explained.

Thanks for you explanation, it clears things up. I think the issue might be that we were planning to file paperwork with layer's offic on Friday, travel to new city over the weekend and stay in hotels for first part of the week, close sale of the Canadian property in absentia on Monday, transfer funds and close purchase of new US property on Wednesday. Concern might be our crossing a day or two before official Canadian closing. If an issue, we can stay with family an extra week until closing completed, and then cross once paperwork is filed. If not an issue, we can stay with original plan. Question is, is Canadian property still considered our residence until closing is completed on the Monday, even though we crossed?

nelsona · Post by **nelsona** » Sat Apr 21, 2012 1:09 pm

Can I ask what the urgency is? Since one of you is starting a job, then shouldn't the new firm be taking care of all this?

Bonib · Post by **Bonib** » Mon Apr 23, 2012 8:10 am

I believe I recently had a similar situation as the author.

Any medium / large size firm should have a competent lawyer that can help you with all this. Atleast my move was fairly painless because of the help I got.

nelsona · Post by **nelsona** » Mon Apr 23, 2012 10:14 am

Exactly bonib.

Expat, You should be reading over CRA emigrants guide for what to expect.