deducting real estate commission for moving under TN

nccanadian · Post by **nccanadian** » Fri Jul 19, 2013 10:57 pm

Hi all, could you pls help me answer this question

Here is the scenario
1) I did not work in Canada in 2013 but received one paycheck in 2013 from my previous canadian employer for work done in 2012
2) I moved with my family to US to work in Jan 2013 under TNvisa. The house was vacant all the time since moved to US in Jan 2013 and sold my house in Canada in May 2013.
3) Me and my spouse are canadian citizens

My questions:
1) should I deduct my moving expenses in US tax returns or Canadian
2)would I be able to deduct the expenses for selling the house (real estate commission, lawyer fees etc) with US or Canadian tax returns?

nelsona · Post by **nelsona** » Sat Jul 20, 2013 8:04 am

1) you can never deduct expenses for moving FROM Canada on a Cdn return. Besides, you can only deduct moving exapensea against future wages. and you won;t be reporting any US wages in canada on your departure return.

Only on US return.

2) Neither, since this as your principal residence.

Don't forget to report the Cdn wages on your US return.

Did you abide by all the non-resident sale issues in canada. If not expect a $2500 fine next spring.

nccanadian · Post by **nccanadian** » Sat Jul 20, 2013 8:20 pm

Nelsona,
You are terrific and appreciate all your efforts to help people here. Its great to help people in any way and you are good at it.May you be blessed forever.
Now can you pls guide me where can I find info about the rules for non-resident sale? I searched and found a Form 2091 - is that what I need? Do I have to send it now or along with tax return? Also if I incurred a loss in the sale of the house would I get a refund or future tax credits ? Thanks in advance again.

nelsona · Post by **nelsona** » Sat Jul 20, 2013 9:32 pm

Only the portion of loss between when you left and the sale are potential losses. CRA would have to accept this. The fact that you never rented this place out prooably means that you never intended to gain income from it, thus the expenses and losses are not eligible.

You were supposed to file these compliance forms before sale. You will need to do this NOW, although you may have already delayed long enougfh to incur the maximim penalty.

The losses, if any are allowed, could only be used in future years when you have Canadian cap gains, which would either be after you return to Canada or if you sell a Cdn property.