Canadian citizen moving to US - selling property

[homewardbound]

I am a canadian citizen and expect to emigrate to US (under a IRCR1) before end of August.

Purchased a new condo several years ago prior to getting married. Intent at the time of purchase was to make this my permanent primary residence. Have been rentng for a couple of years waiting for the condo to be finished.

Married a US citizen last year... and wish to sell the condo as it is no longer needed.

Interim occupancy possession is not til October with final closing (transfer of title) til Feb 2014. I cannot sell unit now builder will not consent to assignment pre interim occupancy.

Will I be considered a non resident when I take interim occupancy possession?

What are the tax implications? CDN and US.

[nelsona]

The house will never have been your principal residence, in eyes of either US or Canada.

So, when you sell -- yes, you will still be considered non-resident of canada when you move to US in August, nothing about the condo will change this -- you will owe tax on any gain that you make in both Canada and US.

You will have to follow the rules on non-resident selling Cdn property.

[homewardbound]

Thank you for this info.

Ok... so based on the tax payable, this isnt a good financial decision.

I will stay in Canada continuing to work for a CDN company til beginning of November 2013.

In October, the unit will be ready for interim occupancy. I will take interim possession and reside there until I relocate to the US in November. I will be able to list the property for sale (upon obtaining builder approval) upon receiving interim possession. Final closing and transfer of title to new owner would be within 3 months of interim possession.

Between August and November, I will periodically cross to visit my spouse, however will not activate my Visa til November when I resign my position and move all my belongings.

I cannot find any rules regarding new condo ownership (concet f interim and final closing) and residency.

I would appreciate your expert advice herein and thank you in advance.

[nelsona]

I would not delay residency just on the basis of what you have described.

Will you make a profit on thisproperty. If not, the having it never been your residence will actually benefit you.

You said earlier you were moving in august, now it is november. which is it?

I don;t know what "rules" you are looking for. You either live (somewhere) in canada or you don't. Ownership means nothing, condo means nothing. Once you activate your GC, you will be US resident, and Cdn non-resident, before that you will be Cdn residet, regardless of what you Cdn home is.

"interim" ownership also means nothing. You either live there, or you don;t.