How to determine Departure Date in my departure return?

stellal · Post by **stellal** » Mon Jan 13, 2014 3:33 am

I left Canada to reunion with my husband in US in November 2012, and kept my premium residential house in Canada. I started working under TN in US since March 2013, and decided to sell our Canada house. We sold it in August 2013 with some capital gains.
We filed regular Canada return and 1040NR in US last year. We plan to file Canada departure return and 1040 in US this year, and don't know what's the reasonable departure date. We want to put August 2013 as departure date to avoid tax on the gains earned from selling my house. I don't know if CRA will question us on that or not because I left Canada for US on November 2012 under H4.
Thank you for your inputs.

nelsona · Post by **nelsona** » Mon Jan 13, 2014 8:51 am

You should put nov 2012. I would amend my 2012 return.

Even with that date you were not subject to gains tax. You left before your sale in any event, and should have treated yourself as deperted when you sold.

stellal · Post by **stellal** » Mon Jan 13, 2014 1:17 pm

Nelson, thank you for your response.
If I put Nov 2012, does that mean I have to pay tax gain of my canada house? I heard it is 25% of gain, is that correct?

Thanks a lot.

nelsona · Post by **nelsona** » Mon Jan 13, 2014 1:36 pm

No, as i already said.
Those leaving Canada have 1 year to sell therir principal residnce, before any tax would be due, and that tax would only be on the growth from the departure date until sale.

What departure date did your husband put on his 2012 return?

stellal · Post by **stellal** » Mon Jan 13, 2014 1:41 pm

He has not reported departure either as I did not report my departure. Before I moved to US, he returned to Canada every weekend.

stellal · Post by **stellal** » Mon Jan 13, 2014 1:56 pm

Nelson, I have another question regarding the tax of my selling house. I would like to know how government decides the growth from the departure until sale?

Thanks a lot, I really appreciated.

nelsona · Post by **nelsona** » Mon Jan 13, 2014 2:12 pm

So his departure date would be the same as yours November 2012.

You would have an appraisal fbased on your departure date.

For the third time, you are NOT taxable on your home becasue you sold it within one year of leaving.
Can we drop this? You have other issues to fix, like your 2012 return.

And I'm uncllear as to when he went to US and whether or not he shoudl have ben filing 1040.

stellal · Post by **stellal** » Mon Jan 13, 2014 2:49 pm

Thank you very much, Nelson. Your response helped me a lot.

stellal · Post by **stellal** » Mon Jan 13, 2014 4:28 pm

Nelson, I have another question regarding HBP repayment. My husband has 17K HBP left needs to pay back. I just searched the posts and found that it is due within 60 days after departure. We will have to file it as our income, the question is can we file it as income in 2013 as non-resident as this 60 days policy? or he has to amend the 2012 return as 2012 income, if that is true, those 17K will be taxed by the higest rate.

Thanks a lot.

stellal · Post by **stellal** » Mon Jan 13, 2014 4:30 pm

I forgot to mention that our departure date is Nov 26, 2012

nelsona · Post by **nelsona** » Mon Jan 13, 2014 4:57 pm

He must amend his 2012 return, which is when he left. The 60-days applies only to the time period for repayment. The unrefunded portion must be included on one's departure return.

nelsona · Post by **nelsona** » Mon Jan 13, 2014 4:59 pm

You do realize that until he fileds departure date, he must include US income on his Cdn return.

You need to get this fixed, and fixed accurately.

stellal · Post by **stellal** » Mon Jan 13, 2014 5:17 pm

Thanks for your quick response. He already filed his US income in his Cdn return. The reason he chose 1040NR is because it is easier to file. From the tax point of view, 1040 and 1040NR is the same as the saved tax from 1040 still has to go to Cdn government when filing Cdn return.

nelsona · Post by **nelsona** » Mon Jan 13, 2014 5:32 pm

Yes, but he should not have been reporting his US income in canada, since he no longer lived there. that makes it ZERO tax in canada.

When did he start working in US?

stellal · Post by **stellal** » Mon Jan 13, 2014 5:41 pm

He started working in US since 2010, because my child and I still live in Canada and he visited us every weekend, it is said he has to report his worldwide income to canada, so for the last 2 years he filed 1040NR in US and filed his Cdn and US income in his Cdn return.

Could you tell me whether our filing is correct or not, we really dont know much about tax, just some hear-says.