I am a Canadian Citizen immigrated to United States (end of July). Since I moved to US, the property is locked and no rental income or free family accomodation. I have some questions about the primary residential property in Canada.
1) Since it was my primary residence in Canada, will the capital gain on the appericiated property taxable in Canada? How about in USA?
2) If the answer is "no" to question 1, How much time do I have to sell my property without incurring tax in either country.
3) I have an employer who is offering a signing bonus (but in reality they are paying for my relocation). I am adviced that the amount will be taxable which I agree. My question is: If I sell my house in Canada, are the selling expenses (such as commission + taxes paid, marketting cost, listing cost as well as moving expenses)tax deductable in USA?
4) The signing bonus is one time $$ paid in 2005. Can I pay tax when I file return for 2005 but deduct expenses for the year 2006 when I actually intend to sell my property?
Any insight will be highly appericiated.
Thanks in advance
Selling house in Canada
Moderator: Mark T Serbinski CA CPA
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">the property is locked and no rental income or free family accomodation.<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
By CRA standards, it is still available to you, and thus you have not broken residential ties, so be careful about your other Cdn activities, so that you can at least claim to be a "deemed non-resident"
1 and 2) Your home was your principal residence until the day you left canada, and thus any cap gains upto to that point are tax free in Both US and Canada. Moreover, if you sell within ONE year of leaving Canada, further gains will also be tax-free in Canada. If you sell with THREE years of moving (without renting out) any futher gains would be tax-free in US. It would behoove you then, to get a firm market value for last July, and keep this as a basis for determining any future tax liability.
3. Nothing related to the selling or buying of homes is deductible as a moving expense.
4. Your moving expenses can only be deducted in the year they are incurred, regardless of when you get reimbursed for them. You are correct to simply view what ever money you get from the firm as a signing bonus, and not a Moving expense allowance, as this is exactluy how the IRS views it. It is then upto you to claim whatever deductible expenses you can.
You might want to read over the IRS Publication 521 on Moving expenses.
<i>nelsona non grata... and non pro</i>
By CRA standards, it is still available to you, and thus you have not broken residential ties, so be careful about your other Cdn activities, so that you can at least claim to be a "deemed non-resident"
1 and 2) Your home was your principal residence until the day you left canada, and thus any cap gains upto to that point are tax free in Both US and Canada. Moreover, if you sell within ONE year of leaving Canada, further gains will also be tax-free in Canada. If you sell with THREE years of moving (without renting out) any futher gains would be tax-free in US. It would behoove you then, to get a firm market value for last July, and keep this as a basis for determining any future tax liability.
3. Nothing related to the selling or buying of homes is deductible as a moving expense.
4. Your moving expenses can only be deducted in the year they are incurred, regardless of when you get reimbursed for them. You are correct to simply view what ever money you get from the firm as a signing bonus, and not a Moving expense allowance, as this is exactluy how the IRS views it. It is then upto you to claim whatever deductible expenses you can.
You might want to read over the IRS Publication 521 on Moving expenses.
<i>nelsona non grata... and non pro</i>