Canadian GC holder moving back to Canada

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pencileveryone
Posts: 23
Joined: Sun Sep 22, 2019 12:10 pm

Canadian GC holder moving back to Canada

Post by pencileveryone »

Hello,

I am a Canadian citizen who moved to the US in 2012. I am now a GC holder since Nov 2017. I am turning 31 this year. I am getting married next year to my financee who is a canadian citizen living in Canada. I am planning to move back to Canada long term, but I would like to keep my GC for as long as possible in case things do not work out in Canada (i.e. job market, pay difference). In order to do this, I am planning to sponsor her GC with the F2A queue and using this as a reason to file for my reentry permit. Since the queue is ~2+ years long, I would ideally be able to file the re-entry permit once more for a total of 4 years in Canada. We haven't decided if we want to move back to the US once she gets her GC. This will depend on job opportunities / kids etc. If we decide to stay in Canada, we will just give up both our GCs.

I am looking for some general advice to see what I should do with my US assets. I have browsed this forum but I'm not sure if the advice apply directly to my situation.

1. I own my primary residence in the states. I plan on keeping it and renting it out. It has only gone up 40K since I purchased and I don't believe the cap gain savings is enough to justify paying the realtor commission.
2. I have 50% ownership in another rental property in the US
3. I have a 401K with fidelity, Roth IRA (via backdoor), ESPP, general brokerage accounts, and general checking/savings accounts.
4. I have a TFSA account which I plan on closing this year. I have been filing it just as a regular investment account in the US and paying any capital gains to the IRS. I only recently found out that this may not be correct (grey area), so I would rather just close it to save the trouble.
5. I am planning on selling some my stocks to buy a property in Canada next year.

Questions:
Any general advice on what I should do with my 401K / Roth IRA / Brokerage accounts? I'm actually unclear on what my options are.

For #5, should I sell my stocks before or after I move back to Canada? Should I only sell my losers in the US and winners in Canada since the cost basis resets? Also, is the foreign tax credit 'categorized' at all? What i mean is that if I am paying higher taxes in Canada based on employment - Can I use this foreign tax credit from "employment" to offset US capital gain taxes (from selling winners in Canada which will not result in much CAN cap gains)?

Thank you for all your help!!
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