Thank you in advance. This forum has been a great source of info for us over the past few years.
Quick summary:
-moved to US from Canada late 2012 - husband's job transfer
-sold house in Canada prior to move, but still maintain RRSPs, bank account, and credit cards in Canada
-purchased home in US in late 2012 and have investments accounts, bank accounts, credit cards, and 401K in US
-we both have permanent resident status
-husband has been working in US continuously from 2012 through to recent retirement
-we have filed FBARs annually
-we have filed jointly in US and he has filed personal returns to CRA because of vesting of CAD long term incentive through tax year 2015. No CRA return for 2016 (no CAD income). I have not filed to CRA since 2012 (no CAD income)
-we have decided to return to Canada to be closer to family and in preparation for that, we have listed our US home for sale (has not sold yet) and we will close on a property in Canada in July. Our primary residence continues to be the US and no specific plan for a move date has been made.
Questions:
1. Does it matter (from a taxation standpoint) when (during the calendar year) we make the move and relinquish GC?
2. Is there a tax implication if we move before selling our US home?
3. Is there anything obvious from the summary above that we might be missing or should plan for with such a move?
We are trying to mitigate unnecessary taxes and don't need to move immediately, but mentally we are ready to move. With the market a little soft for US home sales in our area, it may take awhile if we wait it out.
Thoughts?
Timing for CAD citizen returning to Canada from US
Moderator: Mark T Serbinski CA CPA
1. Not really, you will most likely file a full year US tax return the year you leave anyway, regardless of what you do with Green carad or when during the year you do so.
2. As long as you sell within 3 years you will have no US tax on house sale. There may be some withholding because you would be non-resident (if sold after losing GC). In Canada , you would only be responsible for gain from day you move to Canada until sale (minus costs of selling), so I would not worry too much about that.
3. make sure all your Roth/IRA/4019K) etc, will be accessible when you leave, You need to iron that out before leaving with the investment firm(s). take any optional income before returning to Canada. Think about rolling some 401K money to a Roth (paying tax) before you leave so that it will be tax free forever in future.
2. As long as you sell within 3 years you will have no US tax on house sale. There may be some withholding because you would be non-resident (if sold after losing GC). In Canada , you would only be responsible for gain from day you move to Canada until sale (minus costs of selling), so I would not worry too much about that.
3. make sure all your Roth/IRA/4019K) etc, will be accessible when you leave, You need to iron that out before leaving with the investment firm(s). take any optional income before returning to Canada. Think about rolling some 401K money to a Roth (paying tax) before you leave so that it will be tax free forever in future.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best