Oh, okay. We weren't going to rent out the house anyway. Seemed too much a pain without the tax mess added on!
401K, US Stocks and US Bank Accounts
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Oh, okay. We weren't going to rent out the house anyway. Seemed too much a pain without the tax mess added on!
If you don't sell your US house before you move to Canada, make sure that you get a property appraisal (~ $300) before you leave in order to establish a tax basis for calculating capital gains for Canadian taxes.
We're at the point of listing our house soon and actually have a chance of closing before moving (noting that we've already landed but aren't "residents for tax purposes") - in this case we don't need an appraisal, correct? Do you have any articles about that? I'm having a hard time finding much myself that actually applies to my situation. So far I've just found this: https://taxmap.irs.gov/taxmap/pubs/p597-003.htm
Generally, gains from the sale of personal property by a U.S. resident having no permanent establishment in Canada are exempt from Canadian income tax. However, the exemption from Canadian tax does not apply to gains realized by U.S. residents on Canadian real property, and on personal property belonging to a permanent establishment in Canada.
That seems to support it not being an issue as long as we close at least one day before physically moving to Canada but I don't trust myself on these matters at all!
Disclaimers: I am not a CPA, I am not a lawyer.
Based on what my tax advisors have told me you become a Canadian tax resident only after you move to Canada and establish residence there, e.g. starting a job, getting provincial health insurance, etc. Therefore it would follow that if you were to close the sale of your US property before you physically moved to Canada, there would be no Canadian tax implications.
