Hi All, I have read some of the postings but it did not answer my question clearly so I am poting it.
I moved from CAN to the US due to a job offer. I was transferred by my company. I had to pay the real estate commission and the mortgage prepayment fee and was not reimbursed by my company. The question is which return should I (can I) claim on. The IRS told me that in order for me to claim on my US return I have to be a resident, meaning I need to be in the US for 183 days for that year...I just make the mark but I want to leave to visit my family at Christmas time and they told me that will count as days not in the US. If I can't claim on the US return then it's a moot point, but can I claim on CANADIAN return? I still have a bank account but no property in CAN. I am about to cancel my OHIP and such...any info is helpful!
HELP - Moving Expense Claims
Moderator: Mark T Serbinski CA CPA
To make things simple:
1. You can only claim moving expenses from Canada to US, on your US return, and that would have to be a 1040.
2. NONE of the expense related to the buying or selling of your home is deductible as a MOVING EXPENSES. See IRS publication 521.
IRS Phone phlunkies are notoriously inaccurate, so don't take their word as gospel. Questions about residency are way over their heads, thus the need for fora like this one.
Any Cdn moving to US even in December can file a 1040 so long as they follow the reporting requirements. See IRS Publication 519
Typically though, if one stays in US less than 183 days one would prepare his taxes in the THREE possible ways (non-resident, part-year resident, full-year resident), and file the one which yields the least US tax. If you DO stay 183 days, then you only get to choose between part-year and full-year resident.
Your taxes are very complicated the first year, there is no getting around that, but as you review what is an allowable moving expense, you will see that there is not much, other than the cost of moving and storing you and youre stuff.
<i>nelsona non grata... and non pro</i>
1. You can only claim moving expenses from Canada to US, on your US return, and that would have to be a 1040.
2. NONE of the expense related to the buying or selling of your home is deductible as a MOVING EXPENSES. See IRS publication 521.
IRS Phone phlunkies are notoriously inaccurate, so don't take their word as gospel. Questions about residency are way over their heads, thus the need for fora like this one.
Any Cdn moving to US even in December can file a 1040 so long as they follow the reporting requirements. See IRS Publication 519
Typically though, if one stays in US less than 183 days one would prepare his taxes in the THREE possible ways (non-resident, part-year resident, full-year resident), and file the one which yields the least US tax. If you DO stay 183 days, then you only get to choose between part-year and full-year resident.
Your taxes are very complicated the first year, there is no getting around that, but as you review what is an allowable moving expense, you will see that there is not much, other than the cost of moving and storing you and youre stuff.
<i>nelsona non grata... and non pro</i>
Marven - Re OHIP. If you and/or members of your family are planning to return permanently to Canada within the next five years, then, upon application, OHIP will keep your coverage alive for five years. This is very handy for visits to Canada, and means that there is no longer a three month wait for coverage when you do return.