QUESTION: Hello David, My husband and I are Canadian citizens living in the US. At this point my husband has returned to Canada and I will follow once our US home is sold. We were wondering what the tax ramifications of the move would be. 1. Will the Canadian Govt. expect to be able to tax our profit on the US home sale. 2. What is the best method of movingthe US funds over to our Canadian account when the home sale occurs? Here are the specifics: Husband move to US: Sept 15, 2000 I moved to US: Sept 15, 2001 House in Canada rented out as of August 01, 2001 House in Canda rented till 31 Dec, 2004 Husband returned to Canada and began working 2 May 05 No furniture has been moved from the US house to the Canadian house as of yet I will move to Canada once the US house is sold Purchased house in US Sept 2002 for $270,000 Paid $40,000 for various home improvements House now listed for $420,000 HOme equity line of credit in US for $52,000 We paid US taxes every year We padi Canadian taxes every year on the profit from the home rental in Canada We never declared world income in either country as I was unaware it was an issue. Please feel free to contact me at (w)4xx (h) 4xx. What fee can I expect to pay for a consultation? (A consultation is what I really want.) ----------------------------------- david ingram replies: I charge $375.00 per hour or part thereof (plus GST if in Canada) for this type of consultation. I expect you would be an hour which would be $401.25 Canadian. The profit on the US house is tax free. However there is a tax on any profits on the Canadian House when you move in unless you file an exemption application under section 45(3) to defer paying the tax. You should amend the US returns to report the Canadian rental. Otherwise, believe it or not, Canada has a right to try and tax your US income because you were not reporting your US income to the US. the good news is that they would not likely win, but they can try. Hope this helps you decide what you need to do. If you would like a phone consultation, send me three different times (not Tuesday or Thursday evenings) when you would be available to phone me. Saturday and Sunday are okay at his time as well but not Sunday morning because I do a Radio show on Sundays as follows: Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Call (604) 280-0600 to have your question answered. BC listeners can also call 1-866-778-0600. Callers to the show and questioners on this board can also attend the Thursday Night seminars on finance and making your Canadian Mortgage Interest deductible. David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Res (604) 980-3578 Cell (604) 657-8451 (604) 980-0321 New email to davidingram at shaw.ca <mailto:davidingram at shaw.ca> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . 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