Many thanks to your answers in advance.
I entered US on Jan 17th with TN and changed to H1 on Onctober. I lived in Montreal before I moved to CA. I had canadian income for the time I worked in Canada (Jan. 1 to Jan. 16). I applied Canadian non-resident started from Jan. 17th.
Q1: I bought stock in Canada a couple of years ago. I sold the stock after I moved to US. The stock was in US Nasdaq. To my understanding, I will be double taxed for the capital gain (Canada will tax it on Jan. 16 market value). Is that correct? Which form should I use for report this in Canada?
Q2: I sold my primary house right after I moved to US. I called the Canadian internation tax office regarding the tax question and each time they gave me different answers. One lady told me I have to pay tax since I sold it after I became a non-resident of Canada (She told me the rule has been changed, even though it is my primary house, I still need to pay tax). One gentleman told me I don't need to pay tax, but need to report it (I forgot the form #, maybe form 2062, but send to the local office in Montrel, not to the Canada Revenue). I am very confused with this now. Need help, please.
Q3: Is the QuickTax software can handle my Canadian tax return for my situation? (employment income from Jan 1 to Jan 16, capital gain for the stock I sold in US). I know that for the Federal non-refundable tax credits, I only can claim for the days I live in Canada for the basic personal amount and dependant amount. How about the CPP and QPP contribution and employment insurance premiums. Can the software handle this?
Q4: Should I use US form 8891 for my RPP as well (treat the same as RRSP?)
Q5: I need to apply a ITIN for my son (H4 visa). How should I handle my CA state tax before I get his ITIN. It takes a few weeks before I can get the ITIN. Should I just fill the CA state tax as I already have his ITIN?
Thanks again.
relocated from Canada Montreal to CA, US, first year tax
Moderator: Mark T Serbinski CA CPA
A1. Your stocjk will have a deemed disposition in Canada the day you moved, as you said. However, for US purposes, you are entitiled to use the demed dispo price as its new cost basis: no double tax.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
I just read this article http://www.serbinski.com/Taxation_of_Ca ... he_USA.pdf
and it says "Individuals permanently moving to the U.S. should
consider disposing of capital property prior to
establishing U.S. residence, since unlike Canadian rules,
the U.S. will impose a tax on any capital gain from a
disposition of capital property by a resident. No
provision is made for revaluing the capital property at
the time of entry to the U.S., unlike under Canadian
capital gains rules."
and it says "Individuals permanently moving to the U.S. should
consider disposing of capital property prior to
establishing U.S. residence, since unlike Canadian rules,
the U.S. will impose a tax on any capital gain from a
disposition of capital property by a resident. No
provision is made for revaluing the capital property at
the time of entry to the U.S., unlike under Canadian
capital gains rules."
Serbinski's info is outdated. There was a Sept 18 2000 (2000 
mind you) agreement, which is referred to several times on this board that allows US taxpayers moving from Canada to use the deemed dispo value as therie new basis.
A2. You have learned to NEVER call CRA (or IRS) for an answer to any tax question! By selling after moving to US, while you have complicated things by the need to fill a form or 2, you ill not owe any taxes so long as you sell within the first year after leaving: it is explained right there on the form: you get 12 months. Thewoman that said you py tax because the rules have changes flat lied to you!
A3. Qucktax should be able to handle emigrant returns, however you will not be reporting any actual sales on your cap gains schedule from after deperture, you will be reporting deemed dispositions on January 17th. Also you need to file 2 or 3 other forms (or face penatlty, so don't necessarily rely on software to do everything).
a4, 8891 is strictly for RRSP./RRIF. Some say to file a Rev Proc 2002-23 statement for RPP. I
A5. You file both returns as if you got ITIN, and let them sort it out You can't get the ITIN without filing your 1040 (and the W-7).
mind you) agreement, which is referred to several times on this board that allows US taxpayers moving from Canada to use the deemed dispo value as therie new basis.A2. You have learned to NEVER call CRA (or IRS) for an answer to any tax question! By selling after moving to US, while you have complicated things by the need to fill a form or 2, you ill not owe any taxes so long as you sell within the first year after leaving: it is explained right there on the form: you get 12 months. Thewoman that said you py tax because the rules have changes flat lied to you!
A3. Qucktax should be able to handle emigrant returns, however you will not be reporting any actual sales on your cap gains schedule from after deperture, you will be reporting deemed dispositions on January 17th. Also you need to file 2 or 3 other forms (or face penatlty, so don't necessarily rely on software to do everything).
a4, 8891 is strictly for RRSP./RRIF. Some say to file a Rev Proc 2002-23 statement for RPP. I
A5. You file both returns as if you got ITIN, and let them sort it out You can't get the ITIN without filing your 1040 (and the W-7).
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
