Ugh, I need a rant...

[Kas&Isaac 2]

I'm not sure what province you're in, but some provinces require you to hire a property management group, should you be an "out of country" landlord. It could get very costly (taxes, maintenance, insurance etc.) that you may be losing when renting.

I spoke with my accountant and was told I have 183 (around that - I don't have his exactly email in front of me for exact days) days to sell my home post-move without having to pay capital gains and losses. I don't know if it would be worth it for you to rent for a short period, if your intentions are to ultimately sell. If you rent it out, even for a short period of time, you'll have to pay taxes on it versus if you kept it vacant (and sell before the alloted time), it would be considered your primary residence and you won't be subject to cap gains.

My house will be vacant (my family will check on it daily - my father is a realtor as well) when I move. I'm prepared to pay for the mortgage for the 6 months, though I don't think it will sit on the market for that long... praying that Vancouver real estate picks up again!

Fingers crossed for you Lights!!!

The house sold a few months ago (after almost a year on the market) at a loss so there are no sale proceeds to cover car loss...

Just bend over and take it.

The crtc ruling on no more three year contracts - they couldn't issue new contracts after December 2013 I do believe. Those of us who signed contracts prior to that are hooped.

My condo has been listed since February. The Saskatoon real estate market tends to favour single family homes over apartment style condos so I am hoping my condo can sell by the end of the year as I was setting my goal to have everything done by early next year.

[pro_star 52]

Worse comes to worse, you can email Vancouver when they get your petition and ask them to put it on hold. That's what I did.

It sucks, delaying things but what can you do?

[NikLR 13,220]

Even in the uhaul it cost me more than I could sell my car for to move down here. Thankfully i was only renting but because the last part of the process cost so much including the trip to Montreal for the week, hubs plane ticket up to Canada and the uhaul, we were unable to buy a house last year and were stuck in our apartment for another year trying to save up again.

[mrs thb 331]

I wanted to change my cable this year to get different services. Luckily I inquired about cancellation of services as well. If took on the new services, I would be committing to another year, even for downgrading in services!!! So, I kept the existing services paying more because it was less than the cancellation charges.

I hear everyone on taking a hit. It's not just taking a loss on the home especially if you want out fast.....but also taking a hit on the contents as it might not worth the $$$ shipping them. I'm also taking a hit with cancelling my mortgage early. Oh well! It's only money.

Good news I should get $$$ back on:

-auto and home insurance ( I pay annually rather than monthly)

-drivers licence

-plates

Woo hoo!!

[Lakehouse 293]

I actually switched to monthly insurance payments for home and auto as I had them calculate what I would pay that way versus what would be refunded if I paid for the whole year then cancelled.

I also sold my home and called CRA to see if I had to stick around for the possession date tax-wise, and they said yes, as that's when the money changes hands and if I became a non-resident of Canada I'd have the capital gains taxes. So I have to wait a couple weeks after my interview... which is ok, I'll finish the final packing and details during that time.

The costs of flying all over this country for the appointments is another expense that makes me crazy! Everyone I talk to is stunned that there aren't more medical locations, and that everyone doing a CR1/IR1 has to fly/go to Montreal. I'm currently here in BC for the medical (from Calgary), but at least get to visit friends and family for a few days.

My biggest hit in finances will be with the exchange rate. But I'll leave the vast majority of my money here in my Canadian account and slowly milk it south as the rates allow... I'm sure hoping for some improvements soon!

Thank goodness I'm a freak and don't own a cellphone/ have that contract to worry about

These things are all to be balanced by the fact that it is my/our decision to move to the US, knowing such consequences are a part of it all... doesn't make the losses any easier to swallow some days. All in all, being back with the man I love soon is the most important part.

Edited June 13, 2014 by Lakehouse

[Lights 56]

I actually switched to monthly insurance payments for home and auto as I had them calculate what I would pay that way versus what would be refunded if I paid for the whole year then cancelled.

I also sold my home and called CRA to see if I had to stick around for the possession date tax-wise, and they said yes, as that's when the money changes hands and if I became a non-resident of Canada I'd have the capital gains taxes. So I have to wait a couple weeks after my interview... which is ok, I'll finish the final packing and details during that time.

The costs of flying all over this country for the appointments is another expense that makes me crazy! Everyone I talk to is stunned that there aren't more medical locations, and that everyone doing a CR1/IR1 has to fly/go to Montreal. I'm currently here in BC for the medical (from Calgary), but at least get to visit friends and family for a few days.

My biggest hit in finances will be with the exchange rate. But I'll leave the vast majority of my money here in my Canadian account and slowly milk it south as the rates allow... I'm sure hoping for some improvements soon!

Thank goodness I'm a freak and don't own a cellphone/ have that contract to worry about

These things are all to be balanced by the fact that it is my/our decision to move to the US, knowing such consequences are a part of it all... doesn't make the losses any easier to swallow some days. All in all, being back with the man I love soon is the most important part.

Hmm, I don't know if it's different with CR1 or K1, but I was told by my accountant that I would have 183 to sell after I move to the US without having to pay capital gains etc. But then again, I'm not making any money off my condo, so not sure if that was a factor. I'm thinking because I'm a K1 visa holder, I'm not considered a permanent resident or a greencard holder until I file AOS. So that means from the time I move to when I file AOS and become a permanent resident, that I would still have the option within 90 days to come back to Canada (which of course won't happen). Whereas a CR1 filer is a non-resident after they move because you have permanent residency after POE?

Argh... had an offer and then it fell through. Now back to square one.

Edited June 13, 2014 by Lights

[mrs thb 331]

Hmm, I don't know if it's different with CR1 or K1, but I was told by my accountant that I would have 183 to sell after I move to the US without having to pay capital gains etc. But then again, I'm not making any money off my condo, so not sure if that was a factor. I'm thinking because I'm a K1 visa holder, I'm not considered a permanent resident or a greencard holder until I file AOS. So that means from the time I move to when I file AOS and become a permanent resident, that I would still have the option within 90 days to come back to Canada (which of course won't happen). Whereas a CR1 filer is a non-resident after they move because you have permanent residency after POE?

Argh... had an offer and then it fell through. Now back to square one.

Lights, what's that? (in bold)

Sorry to learn your offer fell through. The next buyer is on their way..... !!!

[pro_star 52]

Boo to that Lights!! I'm hoping it goes soon! I know your pain.

[floridaboundcanuk 7]

Just a general comment, plan ahead...years ahead.. I've planned my move fore like 3 years before I moved and escaped most fees and costs associated with moving. Since I've been here I've been totally set to cover my costs and knew exactly what to expect...you just have to overly, ridiculously plan.

[mrs thb 331]

Just a general comment, plan ahead...years ahead.. I've planned my move fore like 3 years before I moved and escaped most fees and costs associated with moving. Since I've been here I've been totally set to cover my costs and knew exactly what to expect...you just have to overly, ridiculously plan.

Thanks floridaboundcanuck.

So what are your suggestions???

I still have months ahead of me. It's impossible to know all the tidbits seeing as many topics posted get 'off topic'. I've read the moving thread.

[Krikit 1,163]

I also sold my home and called CRA to see if I had to stick around for the possession date tax-wise, and they said yes, as that's when the money changes hands and if I became a non-resident of Canada I'd have the capital gains taxes. So I have to wait a couple weeks after my interview... which is ok, I'll finish the final packing and details during that time.

The person you spoke with at CRA didn't quite get it right. Capital gains do not apply if the property was your principal residence prior to emmigration. Your lawyer will request a Certificate of Compliance from Revenue Canada because you will be deemed a non-resident when you leave the country prior to the closing date. RC will do an audit then either send a letter requesting payment of back taxes or forward the Certificate of Compliance. There will be no taxes paid on the sale of the home if it was your principal residence at time of sale. Therefore, there is no disclosure of the sale required on your taxes and no taxes payable on capital gains.

So here is what will happen:

• You sign the contract on the sale of the house.
• You go to your lawyer, explain the situation, he/she will explain the process, then request a Certificate of Compliance from Revenue Canada.
• Revenue Canada will revue your taxes and either send a letter of compliance or submit a letter of taxes owing.
• 30% of the purchase price is withheld in escrow until the lawyer receives an all-clear letter from Revenue Canada. Any outstanding amounts payable will be deducted from those funds prior to RC issuing the release document.
• You go back to your lawyer, sign the closing documents, and give them the keys to the house.
• You move to the US.
• The house closes and the lawyer receives the payment. He/she pays off what's outstanding, takes their cut, then sends you the rest.

Note: It could be 25%, and not 30%, of the purchase price which is held in escrow. I am fuzzy on the exact percentage at the moment. The Certificate of Compliance process takes about two weeks.

[dburnt 59]

I would be contacting the DMV of your state to see if you can still register a Cdn vehicle that still has an outstanding loan....as each states DMV is different. And of course check to see if you the holder of your car loan will allow it to goto the USA

the issue isn't with DMV...it is usually within the loan contract. Mine stated in the itsy bitsy print that i could not take it out of province or out of state for more than 60 days...

My fiance had a guy at work whose wife was from Canada and brought her car with her without paying off the loan. Somehow, they got wind of it, and they repossessed the car...so I contacted Honda Canada, and it was emphatic - pay off the loan or leave the car. This is apparently in most if not all loan contracts

I assume it is because once you leave Canada, they have no way to get back their property if you default.

[Lakehouse 293]

The person you spoke with at CRA didn't quite get it right. Capital gains do not apply if the property was your principal residence prior to emmigration. Your lawyer will request a Certificate of Compliance from Revenue Canada because you will be deemed a non-resident when you leave the country prior to the closing date. RC will do an audit then either send a letter requesting payment of back taxes or forward the Certificate of Compliance. There will be no taxes paid on the sale of the home if it was your principal residence at time of sale. Therefore, there is no disclosure of the sale required on your taxes and no taxes payable on capital gains.

So here is what will happen:

• You sign the contract on the sale of the house.
• You go to your lawyer, explain the situation, he/she will explain the process, then request a Certificate of Compliance from Revenue Canada.
• Revenue Canada will revue your taxes and either send a letter of compliance or submit a letter of taxes owing.
• 30% of the purchase price is withheld in escrow until the lawyer receives an all-clear letter from Revenue Canada. Any outstanding amounts payable will be deducted from those funds prior to RC issuing the release document.
• You go back to your lawyer, sign the closing documents, and give them the keys to the house.
• You move to the US.
• The house closes and the lawyer receives the payment. He/she pays off what's outstanding, takes their cut, then sends you the rest.

Note: It could be 25%, and not 30%, of the purchase price which is held in escrow. I am fuzzy on the exact percentage at the moment. The Certificate of Compliance process takes about two weeks.

I maybe have used the wrong terminology as far as calling it a capital gains tax, but regardless, it's being taxed on a sale of the Canadian house when no longer being a resident. It is my primary residence.

Thanks for the great information!

I've already booked movers and my plans will be to remain until possession anyway, so I won't need to worry about the cert of compliance.

Hopefully this topic will be helpful to someone else.

[Kathryn41 3,205]

I actually switched to monthly insurance payments for home and auto as I had them calculate what I would pay that way versus what would be refunded if I paid for the whole year then cancelled.

I also sold my home and called CRA to see if I had to stick around for the possession date tax-wise, and they said yes, as that's when the money changes hands and if I became a non-resident of Canada I'd have the capital gains taxes. So I have to wait a couple weeks after my interview... which is ok, I'll finish the final packing and details during that time.

The costs of flying all over this country for the appointments is another expense that makes me crazy! Everyone I talk to is stunned that there aren't more medical locations, and that everyone doing a CR1/IR1 has to fly/go to Montreal. I'm currently here in BC for the medical (from Calgary), but at least get to visit friends and family for a few days.

My biggest hit in finances will be with the exchange rate. But I'll leave the vast majority of my money here in my Canadian account and slowly milk it south as the rates allow... I'm sure hoping for some improvements soon!

Thank goodness I'm a freak and don't own a cellphone/ have that contract to worry about

These things are all to be balanced by the fact that it is my/our decision to move to the US, knowing such consequences are a part of it all... doesn't make the losses any easier to swallow some days. All in all, being back with the man I love soon is the most important part.

Something you will need to keep in mind with regards to your 'foreign' (ie Canadian) accounts and moving money to the US: Every year that you have more than $10,000 in combined financial assets (excluding retirement pensions funds) you are required by the US government to file a document known as a FBAR - Report of Foreign Bank and Financial Accounts. This needs to be done electronically and filed before June 30th of the following year. Here is a link to the information: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR . There is no taxation involved or anything like that, but it is part of their anti-terrorism protection; they want to know about the financial resources located outside of the US for anyone resident in the US. There are strict penalties if you do not file the report. The report is actually very easy to do.

Also, every time you transfer money from Canada to the US you may be required to complete and file a FINCEN 105 form - Report of International Transportation of Currency or Monetary Instruments if the total amount is more than $10,000 at one time. If you are transferring funds from your Canadian bank directly to your US bank then you don't need to complete this form as the banks report that transfer to the appropriate US authorities. If you or anyone is physically transporting the money as cash, bank draft, money order, etc. either in person or through the mail or courier services, then you do need to complete the FINCEN 105 form (Financial Crimes Enforcement Network). Here is the link to the information: https://help.cbp.gov/app/answers/detail/a_id/195/~/currency-%2F-monetary-instruments---amount-that-can-be-brought-into-or-leave-the . I can't get the actual form PDF link to activate but it is located at the bottom of the page brought up by the above link.

This needs to be done within a specified time period if you are mailing the funds and it needs to be declared and filed at the border when you are crossing if you are carrying the funds. Failure to do so can lead to the money being confiscated.

I was a co-executor of my father's estate and when he passed away I had to file these forms as long as the estate accounts were open and then when we closed out the estate accounts and I received my share of his estate so I am very familiar with them :-).

So, just so you are not taken by unwelcome surprise by more US paperwork :-).

[mrs thb 331]

Something you will need to keep in mind with regards to your 'foreign' (ie Canadian) accounts and moving money to the US: Every year that you have more than $10,000 in combined financial assets (excluding retirement pensions funds) you are required by the US government to file a document known as a FBAR - Report of Foreign Bank and Financial Accounts. This needs to be done electronically and filed before June 30th of the following year. Here is a link to the information: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Report-of-Foreign-Bank-and-Financial-Accounts-FBAR . There is no taxation involved or anything like that, but it is part of their anti-terrorism protection; they want to know about the financial resources located outside of the US for anyone resident in the US. There are strict penalties if you do not file the report. The report is actually very easy to do.

Also, every time you transfer money from Canada to the US you may be required to complete and file a FINCEN 105 form - Report of International Transportation of Currency or Monetary Instruments if the total amount is more than $10,000 at one time. If you are transferring funds from your Canadian bank directly to your US bank then you don't need to complete this form as the banks report that transfer to the appropriate US authorities. If you or anyone is physically transporting the money as cash, bank draft, money order, etc. either in person or through the mail or courier services, then you do need to complete the FINCEN 105 form (Financial Crimes Enforcement Network). Here is the link to the information: https://help.cbp.gov/app/answers/detail/a_id/195/~/currency-%2F-monetary-instruments---amount-that-can-be-brought-into-or-leave-the . I can't get the actual form PDF link to activate but it is located at the bottom of the page brought up by the above link.

This needs to be done within a specified time period if you are mailing the funds and it needs to be declared and filed at the border when you are crossing if you are carrying the funds. Failure to do so can lead to the money being confiscated.

I was a co-executor of my father's estate and when he passed away I had to file these forms as long as the estate accounts were open and then when we closed out the estate accounts and I received my share of his estate so I am very familiar with them :-).

So, just so you are not taken by unwelcome surprise by more US paperwork :-).

Excellent info Kathryn41!

Thanks for sharing.

I just love this forum and it contributors.