Moving to US - house sale and DPSP

jeonju77 · Post by **jeonju77** » Tue Mar 05, 2013 1:30 pm

I have moved to US in January 14th, 2013 to start working under TN visa. I was working for my former employer in Canada until January 11th 2013 and have some questions regarding house sales and the disposition of DPSP

1. I just put the house on the market for sale on March 4th. I still held all my bank accounts in Canada and was going back home every other weekends to clean up and finish the house to be saleable. Am I still considered a 'resident' of Canada? I do not wish to go through the whole withholding process. Would it be legal to be considered non-resident after the sale?

2. I will be receiving another DPSP payment from 2012 this April. I was electing to convert them into RRSP.

Your advice would be appreciated.

nelsona · Post by **nelsona** » Tue Mar 05, 2013 2:24 pm

You do NOT want to be considered resident, or you will ahve to pay Cdn tax on your US income.

Do not worry about the reporting aspect, it is not troublesome for what was your principal residence. Besides, what if it takes months to sell.

You left Canada to live and work Jan 13. Period.

2. as long as you do a direct transfer, you will not have to report the income on either your US or Cdn return. Otherwise, you could see your self being taxed in US on this income, since the RRSP 'contribution' will not be recognized.

jeonju77 · Post by **jeonju77** » Tue Mar 05, 2013 3:45 pm

>Do not worry about the reporting aspect, it is not troublesome for what was your principal residence. Besides, what if it takes months to sell.

So are you suggesting just to deal with the 25% (of capital gain from Jan 13) withholding? I assume CRA will not be in any rush to refund the money back to me.

Would it be a good idea to get an appraisal letter dated back to Jan 13 to minimize the withholding amount and just start the report process right now?

nelsona · Post by **nelsona** » Tue Mar 05, 2013 4:05 pm

First off, the there is no withholding if you correctly file the paperwork that you must file. And on that paperwork, you willseed that it is impossible to owe any cap gains if you sell within one year of decl;aring non-residency.

So, "deal with" the paperwork, as you and your broker are required to do, and that is all you will have to "deal with".

nelsona · Post by **nelsona** » Tue Mar 05, 2013 4:06 pm

But, yes, if you don't think it ios going to seel quickly, an appraisal for January could evantually become useful.

jeonju77 · Post by **jeonju77** » Wed Mar 06, 2013 1:39 pm

Thanks for clarification. I've seen way two many websites say different things about the withholding my head was spinning.

Just one more question,

I see the forms you talk about is T2062 (along with T2091 which calculates out the taxable capital gain to equal zero for upto a year). Who usually takes care of it? Is it the lawyer/broker or myself?

nelsona · Post by **nelsona** » Wed Mar 06, 2013 1:45 pm

anyone will do it for the right price.