As I said, he would be deemed non-resident once he established MORE ties in US than canada. Given that your home family AND job are still in canada, merely getting a green card would do nothing to your Cdn tax residency.
Ta100 has a property in canad that he does not even live in. Hardly the same situation.
Moving to US - house sale, Stock Options and RRSP
Moderator: Mark T Serbinski CA CPA
So finally I have not decided to enter US to activate my Green Card and so the SSN get issued for however long it takes (2 to 4 weeks) as I am expecting a job offer for January start time.
I will apply open bank account next day.
I will wait for SSA to issue SSN automatically (requested in DS230 form).
I will not apply for the Driver's license yet, as I will be moving to neighbouring state than the one I am initially having an address in.
I will come back to Canada for few weeks and put my house on sale (my job in Canada will continue in the mean time).
I will file last few weeks of December as dual citizen with IRS seeking foriegn tax credit.
I will file the tax for the entire year with CRA as usual.
For any weeks I work next year in Canada. I will file tax following year for those weeks only as normal.
For the rest of the 2013, I will file tax with IRS as resident.
I will inform CRA after my house is sold and my family moved to US sometime in Feb/Mar that I am declaring non-residency. I will close down all my credit cards (don't know if its neccessary) and investment accounts. Will keep one chequing account with TD. I am expecting to get no tax on house sale, whether I declare non-residency before the closing of the house or after.
I will ask my employer if my options are going to be transfered with me. Since they are in the NASDAQ anyways and are held by US firm.
For RRSP and DRSP (employer contribution) I also need to ask my employer that I will have to sell them in 2013 after declaring non-residency. DRSP I typically can't touch, unless I leave the company. So its going to be unique situation where I am transfered to my US main office where I will start my 401 contribution naturally, but can't desolve DRSP in Canada since I have not left the company.
I will apply open bank account next day.
I will wait for SSA to issue SSN automatically (requested in DS230 form).
I will not apply for the Driver's license yet, as I will be moving to neighbouring state than the one I am initially having an address in.
I will come back to Canada for few weeks and put my house on sale (my job in Canada will continue in the mean time).
I will file last few weeks of December as dual citizen with IRS seeking foriegn tax credit.
I will file the tax for the entire year with CRA as usual.
For any weeks I work next year in Canada. I will file tax following year for those weeks only as normal.
For the rest of the 2013, I will file tax with IRS as resident.
I will inform CRA after my house is sold and my family moved to US sometime in Feb/Mar that I am declaring non-residency. I will close down all my credit cards (don't know if its neccessary) and investment accounts. Will keep one chequing account with TD. I am expecting to get no tax on house sale, whether I declare non-residency before the closing of the house or after.
I will ask my employer if my options are going to be transfered with me. Since they are in the NASDAQ anyways and are held by US firm.
For RRSP and DRSP (employer contribution) I also need to ask my employer that I will have to sell them in 2013 after declaring non-residency. DRSP I typically can't touch, unless I leave the company. So its going to be unique situation where I am transfered to my US main office where I will start my 401 contribution naturally, but can't desolve DRSP in Canada since I have not left the company.
Your departure datewill depend on when you sel lyour home.
You do not "inform CRA" that you are non-resident. you inform all those that pay you in canada (employer, brokerage, etc) that you are non-resident. And you make sure that you stop any GSt/CCTB payments you are getting.
The only time you inform CRA is when you submit your dparture return, presumably in Spring 2014.
You would not typically be allowed to disolve DRSP, eben if you left thefirm. It is often required to put in a LIRA.
You do not "inform CRA" that you are non-resident. you inform all those that pay you in canada (employer, brokerage, etc) that you are non-resident. And you make sure that you stop any GSt/CCTB payments you are getting.
The only time you inform CRA is when you submit your dparture return, presumably in Spring 2014.
You would not typically be allowed to disolve DRSP, eben if you left thefirm. It is often required to put in a LIRA.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Thanks. Called CRA and got the similar reply.
They asked me to submit NR73 for so they can determine when I severed my ties with Canada. They key as per them is when my family actually moves. "Getting GC means nothing". I will still be factual or deemed resident of Canada until I move my family and sell my primary residence.
As for selling house, it does not matter if the closing of the house happens after my family leaves, as long as its within the reasonable time (normal 60 to 90 day closings).
Thanks for your patience with me. I was totally stormed with conflicting information before I joined this site.
They asked me to submit NR73 for so they can determine when I severed my ties with Canada. They key as per them is when my family actually moves. "Getting GC means nothing". I will still be factual or deemed resident of Canada until I move my family and sell my primary residence.
As for selling house, it does not matter if the closing of the house happens after my family leaves, as long as its within the reasonable time (normal 60 to 90 day closings).
Thanks for your patience with me. I was totally stormed with conflicting information before I joined this site.
Do not trust anything CRA telephlunkies tell you. They are not obligated to inform you of the treaty rights you have. For example, It is impossible for you to be a "deemed resident"; that is fro cross-border students and government employees, so they were out to lunch on that.
Absolutely DO NOT submit an NR73 to them. This is a document that is unecessary and that rarely results ina a favorable determination.
Once you live and work in US, even if you have ahouse in Canada you are a deemed non-resident. which you decide for your self, based on having more ties in Canada. You do not have to sell your property to be a non-resident, when you move to US.
Absolutely DO NOT submit an NR73 to them. This is a document that is unecessary and that rarely results ina a favorable determination.
Once you live and work in US, even if you have ahouse in Canada you are a deemed non-resident. which you decide for your self, based on having more ties in Canada. You do not have to sell your property to be a non-resident, when you move to US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Thanks for helping me out this far. So I got my Green Card activated and today I received SSN as well. I also have my job confirmed for Jan 1 start.
Now the shivering starts....lol
My real estate agent told me that last two weeks of December are the dead time of the year as everyone is either visiting family or have visitors. There is zero people out there looking to buy house.
So now my goal is to put house on sale in first week of January and it may have closing day by end of Feb or March (depending on the buyer ofcourse). I am going to join my new job on Jan 1st and will be working remotely for first couple of weeks. Then will be going back and forth.
My family will remain in Canada until the house deal is finalized. Once that is done, then I will have them move to US, also move all my house stuff.
Now when the house closing approach and I receive money in bank (minus the dues and agents' commisions), can I simply wire that money into my US bank account? Or do I have to pay departure tax?
A departure tax is 25% right? its going to be brutal to lose my only investment like this. Please help me understand how can I save my house sale proceedings.
Now the shivering starts....lol
My real estate agent told me that last two weeks of December are the dead time of the year as everyone is either visiting family or have visitors. There is zero people out there looking to buy house.
So now my goal is to put house on sale in first week of January and it may have closing day by end of Feb or March (depending on the buyer ofcourse). I am going to join my new job on Jan 1st and will be working remotely for first couple of weeks. Then will be going back and forth.
My family will remain in Canada until the house deal is finalized. Once that is done, then I will have them move to US, also move all my house stuff.
Now when the house closing approach and I receive money in bank (minus the dues and agents' commisions), can I simply wire that money into my US bank account? Or do I have to pay departure tax?
A departure tax is 25% right? its going to be brutal to lose my only investment like this. Please help me understand how can I save my house sale proceedings.
Have you read the emigrants guisde? Becasue what you said does not make sense, and contradicts what I've already told you here, and everthing else on this site.
You will not be considered non-resident of canada until your family moves. A DL means nothing. Your going back and forth to Canada is what keeps you Cdn resident.
As to your US tax filing, you must file some form of tax retirn for 2012 becuae you got your GC in 2012. Likely dual-status. based on the issue date of your GC. if not earlier. Or you join your spouse on her usual 1040. Your Cdn return for 2012 will be as uusual. 2013 will be your departure date, when your family moves.
Your home sale is not subjectt odeparture tax, and depature tax is not 25%. Departure tax is deemed disposition tax, maening that certin investments you have are DEEMED to be sold on departure date from Canada. This does not include your home, or RRSP. It is mainly unsheltered investments. You pay tax on the accrues gains of these.
If you sell your house as a non-resident, you are subect to NON-RESIDENT withholding rules (i guessthat is where you get the 25%?). However, even this does not mean any tax if sold within a year of leaving Canada, as the forms that you will need to fill out will show.
You will not be considered non-resident of canada until your family moves. A DL means nothing. Your going back and forth to Canada is what keeps you Cdn resident.
As to your US tax filing, you must file some form of tax retirn for 2012 becuae you got your GC in 2012. Likely dual-status. based on the issue date of your GC. if not earlier. Or you join your spouse on her usual 1040. Your Cdn return for 2012 will be as uusual. 2013 will be your departure date, when your family moves.
Your home sale is not subjectt odeparture tax, and depature tax is not 25%. Departure tax is deemed disposition tax, maening that certin investments you have are DEEMED to be sold on departure date from Canada. This does not include your home, or RRSP. It is mainly unsheltered investments. You pay tax on the accrues gains of these.
If you sell your house as a non-resident, you are subect to NON-RESIDENT withholding rules (i guessthat is where you get the 25%?). However, even this does not mean any tax if sold within a year of leaving Canada, as the forms that you will need to fill out will show.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
So this means that I can move my family and my belongings to US as soon as the deal for the house is done. And I will be able to transfer proceedings from the house sale without any taxes to US.
As for the RRSP and DRSP, I will have to declare non-resident and then cash them out and pay 25%. This tax then will be claimed in spring 2014 tax filing under treaty. I don't know how much I can get it back though.
I think for RRSP withdraw, I need a smart accountant for 2013 tax year. Will you recommend any?
As for the RRSP and DRSP, I will have to declare non-resident and then cash them out and pay 25%. This tax then will be claimed in spring 2014 tax filing under treaty. I don't know how much I can get it back though.
I think for RRSP withdraw, I need a smart accountant for 2013 tax year. Will you recommend any?
US tax on the transfer of money?!? C'mon, Calm down and read more carefully
Transferring of money is not income. US and canada tax on income. so, it doesn;t matter where the money is, INCOME is taxed, not holdings.
After you leave canada, you can cash in your RRSP and pay Canada 25%. I guess you mean RDSP? That too. 25%.
There will be nothing to report claim in 2014 on these or invoke the treaty. Its flat tax and that is it. You will get nothing back from this from canada or US.
You may have to report a small amount of this to IRS.
You need tax help NOW, since you and your spouse should be reporting in US, and there are LOTS of special reports to file.
Transferring of money is not income. US and canada tax on income. so, it doesn;t matter where the money is, INCOME is taxed, not holdings.
After you leave canada, you can cash in your RRSP and pay Canada 25%. I guess you mean RDSP? That too. 25%.
There will be nothing to report claim in 2014 on these or invoke the treaty. Its flat tax and that is it. You will get nothing back from this from canada or US.
You may have to report a small amount of this to IRS.
You need tax help NOW, since you and your spouse should be reporting in US, and there are LOTS of special reports to file.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
"If you sell your house as a non-resident, you are subect to NON-RESIDENT withholding rules (i guessthat is where you get the 25%?). However, even this does not mean any tax if sold within a year of leaving Canada, as the forms that you will need to fill out will show."
I spoke to the two real estate agents and the market is at the bottom right now. Almost 30K less than the summer price. I am confused on what to do.
The sellers are still on hold and waiting for price to go further down. The winter buyers Jan-Feb are very few and are very serious buyers who want to move immidetely because of the commute to a new job etc etc.
Whether I move my family in Feb along with the stuff and put empty house on sale in late Feb or March, when I am hopping to get a better price.
So many things running in my head right now. If I read your post correctly then I can move my family early on along with my stuff and I can sell the house within a year of leaving the country and will not have to pay tax on it.
I spoke to the two real estate agents and the market is at the bottom right now. Almost 30K less than the summer price. I am confused on what to do.
The sellers are still on hold and waiting for price to go further down. The winter buyers Jan-Feb are very few and are very serious buyers who want to move immidetely because of the commute to a new job etc etc.
Whether I move my family in Feb along with the stuff and put empty house on sale in late Feb or March, when I am hopping to get a better price.
So many things running in my head right now. If I read your post correctly then I can move my family early on along with my stuff and I can sell the house within a year of leaving the country and will not have to pay tax on it.