My question is: Applicable to both US and Canada
QUESTION: First, thank you so much for all the help contained in your
website, and once to me in particular. Wow!
I've read several e-mails to you approaching this issue, and your responses,
but I remain slightly confused about this:
My American husband and I, a Canadian citizen, are returning permanently to
Canada hopefully this year. I sponsored him and he has received his PR card.
In October 2005, we flew to Vancouver to "land" him, and flew right back to
the USA so sell our house. HE bought it in 1995 and since 2003 my name has
been in the title as well (I'm a resident alien). There's no way we'll have
USA capital gains approaching the threshold for a couple of US$500,000.00,
so as far as the US goes, all's ok.
Now it is on the market, and we are waiting, planning to move lock stock and
barrel just as soon as it sells.
My question is: do we have to report the sale of this "principal residence"
to CCRA for the 2006 tax year? As I understand it, my husband "reacquired"
the property the moment he "landed" in October '05 but aren't we (he and I)
allowed one principal residence outside Canada? We own no other real
property.
I'm completely confused by this paragraph in the T2091 form:
"If you were not a resident of Canada for the entire time you owned the
designated property, call us at (phone number). YOUR PERIOD OF NON-RESIDENCE
MAY REDUCE OR ELIMINATE THE AVAILABILITY OF THE PRINCIPAL RESIDENCE
EXEMPTION."
Thank you so much! I've recommended your site to several people.
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david ingram replies:
The piece of paper or plastic you received making your husband a PR of
Canasta dies not make him taxable (or you) in Canada until you actually move
to Canada.
In the meantime, you should apply for your US citizenship BEFORE you come
back and not come back until you have received it.
Getting a green card back later on will be a lot harder than just getting
your citizenship now.
My memory is full of people who abandoned their status in the states to come
back to Canada and then found it impossible or too difficult to get it
again.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
Home office at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or phone
outside of those hours as this is a home office)
email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com/> www.david-ingram.com
<http://www.david-ingram.com/>
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