canadian house won't sell fast enough...

elprogresso · Post by **elprogresso** » Mon Feb 14, 2011 2:53 pm

hi there. i appreciate this forum, but have been swallowed up by the wealth of information found here. hopefully this is an easy one for ya...

i've been offered a gig in california, under TN. i plan on basically selling everything i own (including my car) and starting fresh down south. i've got the house up on the market, but things are obviously slow lately.

so, i'll probably have to keep my mortgage chequing account open, and somehow xfer my new american income into my canadian account, until the sucker sells. i don't plan on renting it out for extra income (methinks the foreign asset thing would probably suck).

am i correct in assuming that as long as i have that property, i'm going to have to pay taxes in canada, and can't fully sever my financial ties?

i have plenty of other questions, but i'm going to keep reading to see if i can dig up the answers on my own.

thanks!

nelsona · Post by **nelsona** » Mon Feb 14, 2011 3:04 pm

As long as you start working in US, and get uyour own place (it does not have to be owned), you will break Cdn tax residency. Technically you will be a deemed non-resident (this is non-resident by treay because your 'life' will now be in US), rather than a pure non-resident, because of the house, but the tax treatment is the same as if you left. You file a departure return, demed disposition, etc.

When one moves to atreaty country like US, there is hardly the need to sell anything to break Cdn residency, so wait for your price.

As long as you sell your house within a year of leaving canada, you will owe no tax on it, although you weill have extra forms to file before/after time of sale due to being non-resident.

elprogresso · Post by **elprogresso** » Mon Feb 14, 2011 3:10 pm

this is awesome. thanks!

my only purpose for selling everything else is because i really don't feel like hauling it down to the states. plus i need a refresh :)

much appreciated.