TN related tax questions

Costco · Post by **Costco** » Fri Dec 06, 2013 10:24 pm

I was offered a position in US starting in mid January so I will not make any money in 2014 in Canada but wife will stay behind until June with kids to finish school and deal with house and such. She will be continue to work in Canada until they come over.
Here are the questions , I own a home in Canada (still paying the mortgage) and want to rent it out but also might sell it. For renting I read here there will be a 25% withhold tax on rental income. What is the tax if we decide to sell the house ? This is our only property and I(we) will be renting for coming years in US because we will not afford a home. The rental money are intended to pay part of the mortgage and property taxes. Rest I will have to cover myself.
I have an RRSP, not to big, and also still have to make payments on HBP. How will this move affect the RRSP , will I be able to withdraw the money or I will be taxed ?

Thank you in advance nelsona :)

nelsona · Post by **nelsona** » Mon Dec 09, 2013 11:01 am

Your HBP will need to be either repaid in full, or the balance will be added to your final CDn tax return.

Your house sale will not be taxable in Canada od US if it is sold within a year of leaving Canada.

Your rental income will be taxable in both US and Canada. the 25% Cdn tax is a first estimate, which can be reduced by your expenses whe nyou file at year end.

Whether or not you need to report your US wages on your Cdn return will depend on how little you visit cnada from the time you get your job, until the time the family joins you.