Did you sell your house?

[Lights 56]

Sorry for the multiple open threads today… I must be in a 'tying up loose ends' mindset. Every answer seems to open up another question.

I have listed my house. It is my primary residence. What if I don't sell before I move? My realtor is a family member and I can temporarily have a friend, who is like a sister to me, stay in the house until it sells. I will be paying the mortgage still, but at least it's not a vacant house where someone could break in, etc.

I've been told that on the Canadian side, since I will likely be selling it at a bit of a loss and that it is my primary residence, I won't have to claim capital loss on it in Canada. If I sell 2-3 months after I move, how does the IRS see it? What will I have to claim immediately or do I wait for tax season?

Thanks in advance!

[pro_star 52]

I'll be honest. Not sure how irs would see it. Just sold my house (after a flipping year, I hope you're in a better market than me!! And yep, I took a loss too. So much for my rrsp's...) and I didn't even think it would affect my taxes - as it's a primary residence and not an income property. Hopefully someone else can chime in as well.

[Lights 56]

I'll be honest. Not sure how irs would see it. Just sold my house (after a flipping year, I hope you're in a better market than me!! And yep, I took a loss too. So much for my rrsp's...) and I didn't even think it would affect my taxes - as it's a primary residence and not an income property. Hopefully someone else can chime in as well.

Did you sell it while you were already in the US?

I've been told, as far as Canada is concerned, it shouldn't be a problem. I believe there is a 1-year leeway, as far as pro-rating the principal residence exemption allows. So if I sell at a loss, there is no gain. So no needing to claim it as 'income' in Canada because it's a primary residence. The kicker will be how the IRS see's it…

I'm trying to sell, but even though I live in one of the major cities in Canada, it seems to be a bit slow. But they have said the 'bubble is bursting' these last few years. There are 2 bedroom condo's in the low-rise beside me going for $450,000… doesn't sound like it's bursting to me yet.

[Lakehouse 293]

Have a read here for more information about selling or renting your house:

http://www.serbinski.com/taxation-in-usa/moving.shtml

[pro_star 52]

Nope I'm still in Canada. Put things on hold waiting for the house to sell. Just figured it was easier/less chance of the house getting trashed than dealing with renters or what have you. Now it finally did (yippee) and I've got the stuff booked in Vancouver for may. (Consulate is pretty good if you contact them and say here's the deal the house hasn't sold can I put my petition on hold for a bit)

[Lights 56]

Nope I'm still in Canada. Put things on hold waiting for the house to sell. Just figured it was easier/less chance of the house getting trashed than dealing with renters or what have you. Now it finally did (yippee) and I've got the stuff booked in Vancouver for may. (Consulate is pretty good if you contact them and say here's the deal the house hasn't sold can I put my petition on hold for a bit)

I might just have to do that if I'm nervous. I'll be listing next month and hope that it sells quick. I am in Vancouver and real estate hasn't really slowed down, so I've been told.

[pro_star 52]

Find a friend you can crash with worse comes to worse and list it sooner rather than later. If the house sells sooner you have a roof. If it takes a bit...well it sucks but it is what it is.

As far as insurance goes I have heard it costs more to insure if it's vacant.

[pro_star 52]

Ps where are you at in the process so far?

[Lights 56]

Ps where are you at in the process so far?

NVC has sent our packet 3 out. So I'm just waiting for it to schedule my interview. I've held off on doing the DS-160… from what I read, doing that online will get packet 4 sent to me where I'll be able to schedule the interview. If I can schedule it for late May or early June, that would be ideal. It'll give me a few months of it on the market… My realtor had a 1 bedroom condo in a less desirable area and it sold within 3 months. So hopefully, with mine being in a pretty good location, it'll go quicker. Who knows, the buyer may be willing to work with me so their possession date is close to when I move to the US.

I'm hoping to list in the next 3 weeks. I have a lot of clean up to do and staging… If it sells earlier, I'm not worried and will have a place to stay.

[pro_star 52]

Well good luck!! As far as once you get your packet 4, they're booking the interviews for may last I checked. So that gives you some breathing time. (Although beware dr cheema is unavailable for a good chunk of may!)

[Lights 56]

Well good luck!! As far as once you get your packet 4, they're booking the interviews for may last I checked. So that gives you some breathing time. (Although beware dr cheema is unavailable for a good chunk of may!)

Thank you! If I move end of June or beginning of July, I'm happy.

My realtor gave me an idea of where I should list my house at. I'm surprised… it was slightly higher than I thought, but he said that listings aren't sitting that long. Which is great news for me! I haven't listed it though… I have to travel for work for 2 weeks, so it's putting a bit of a dent in my plans!

[dburnt 59]

Sale of your primary residence isn't taxable unless you also used it to get rental income within the last year. People sell all the time and switch to rentals (move into apartments, nursing homes, etc.) - that is perfectly allowable. If you had been renting out part of your home, or had business use, it is different.

I researched when I sold my house last year...in anticipation of relocating, not realizing I'd be homeless for months waiting for the visa. Oh well...

[Lights 56]

Sale of your primary residence isn't taxable unless you also used it to get rental income within the last year. People sell all the time and switch to rentals (move into apartments, nursing homes, etc.) - that is perfectly allowable. If you had been renting out part of your home, or had business use, it is different.

I researched when I sold my house last year...in anticipation of relocating, not realizing I'd be homeless for months waiting for the visa. Oh well...

Thank you! No, it has never been used as an income property. It's my only home and primary residence.

The only concern is if I can't sell it before I leave. My brother can house sit for me, to make sure that it's not vacant and won't get broken into, but won't be paying for my mortgage or 'rent'. I asked my accountant and he said I have 183 days to sell when I relocate.

[dburnt 59]

I guess that might make sense, because when you move, it is no longer your primary residence...however, I would say that might not be 100% accurate as the K1 is not an immigration visa (despite it clearly being our intent)...if for example, you returned within the 90 days, that wouldn't be a "relocation"...the 183 days just sounds like 6 months after you become a non-resident.

My house took 4 months to sell, and while it wasn't a "loss" (i.e. I was able to pay my mortgage and realty fees) it certainly wasn't what I'd hoped. We dropped the price 4 times based on what was happening in the neighbourhood, and gave up on Open Houses unless someone on the street had one too.

In any case, if the sale is after you relocate, it is still Canadian rules, and you may wish to consult with someone with international tax experience (not saying your accountant isn't, but mine advised me to see an international tax specialist when tax time rolls around after I move).

[Lights 56]

I guess that might make sense, because when you move, it is no longer your primary residence...however, I would say that might not be 100% accurate as the K1 is not an immigration visa (despite it clearly being our intent)...if for example, you returned within the 90 days, that wouldn't be a "relocation"...the 183 days just sounds like 6 months after you become a non-resident.

My house took 4 months to sell, and while it wasn't a "loss" (i.e. I was able to pay my mortgage and realty fees) it certainly wasn't what I'd hoped. We dropped the price 4 times based on what was happening in the neighbourhood, and gave up on Open Houses unless someone on the street had one too.

In any case, if the sale is after you relocate, it is still Canadian rules, and you may wish to consult with someone with international tax experience (not saying your accountant isn't, but mine advised me to see an international tax specialist when tax time rolls around after I move).

Thank you!

Like someone else said above, depending on the market, I may just stay in my home a month or so later. I still have 6 months from the date of my medical to use my K1. I would be OK delaying my move for a month and a half or so to just limit any complications.

My home is in the heart of Vancouver. There's a lot of speculation that sales are starting to slow down, but the numbers show that houses are still being sold. Given my home is in good condition and in a good neighbourhood, I hope it takes only a few months to sell.

You're right thought. Technically the k1 is not considered an immigrant visa. So if I were to move before the sale of my home, I should have some grace period, since I have 90 days to stay in the US and get married or return home.