Moving Companies Canada to US

[OBX 51]

Would anyone be able to give me some info on using a moving company rather than U-Haul to move household goods from Canada to US (Southern Ontario - New Jersey)? If anyone has had any experience with this - reliability of companies,cost, dealing with the border etc. I would really appreciate it. Planning ahead to the spring. Thanks.

Edited January 1, 2009 by OBX

[carslo 0]

I Have been doing lots of research over the years - haven't had much else to do I am going to use ABF at http://www.upack.com it seems to have the best prices, and reputation. We will use door to door service, as I have mostly boxes and nothing big and cumbersome it will work best for us. Good luck!

Janet

[Kathryn41 3,205]

We used Allied van Lines to move from Chatham, Ontario to just south of Atlanta, GA.

You will want to look at several movers websites as they have excellent online guides for the process. Call in two or three to give you a quote - prices are based on weight and volume and mileage. They come to your home and estimate what the weight and volume will be, We had a lot of books so the estimate was off by about 10%.

Decide who is packing - you can save a lot if you do your own packing. Label boxes as per contents - ie, winter clothing; kitchen utensils; bedding, china, etc. I had the movers pack the good china because I figured if they packed it and broke it I could claim insurance.

You will need to fill out a customs form for unaccompanied goods. Most of the moving companies provide this form and fill it out for you. You will need to cross the border first, activate your visa and then fax back to them a copy of your activated visa for them to present at the border when they cross. Your goods are not allowed to precede you into the US but may accompany you or arrive up to 10 years after you do.

Check out the US Customs website as well - there is a lot of useful information about what is allowed, what isn't, and how to get certain documentation for some restricted items (ie. houseplants require a phytosanitary certificate from the CFIA).

While it was an expensive move, it was definitely worth it for us. My belongings arrived the week after I did all in good shape with nothing missing or broken.

Hope this helps.

Edited January 1, 2009 by Kathryn41

[OBX 51]

Thanks guys.

Another question:

Has anyone had to sell their house and how did you co-ordinate the sale with the move? If I have to activate the visa first to allow the movers to transport my belongings I will technically be a resident prior to the closing of my house??

[trailmix 77]

Thanks guys.

Another question:

Has anyone had to sell their house and how did you co-ordinate the sale with the move? If I have to activate the visa first to allow the movers to transport my belongings I will technically be a resident prior to the closing of my house??

You might also find the threads below helpful.

As far as coordinating the sale of your house, well that's just kind of a gamble, sell too soon and you may be looking for an apartment, hopefully it will sell nearer to the time you move so you can pick a convenient closing date.

As for your second question - are you concerned about being a resident of Canada? It is a bit of a gray area, but technically, if CRA dragged you to court I suppose still having your house in Canada might stand up in court. If you gave us your concerns on that one you will probably get a better answer than the one I just gave

Moving Companies: Vancouver to San Francisco, Can Anyone Recommend Some Companies

Moving: Canada to USA. What company did u use to ship ur stuff?, Re: Shipping belongings without you (not truck rentals)

Moving to the US (U-Haul vs. Upack vs. ???)

[OBX 51]

Thanks guys.

Another question:

Has anyone had to sell their house and how did you co-ordinate the sale with the move? If I have to activate the visa first to allow the movers to transport my belongings I will technically be a resident prior to the closing of my house??

You might also find the threads below helpful.

As far as coordinating the sale of your house, well that's just kind of a gamble, sell too soon and you may be looking for an apartment, hopefully it will sell nearer to the time you move so you can pick a convenient closing date.

As for your second question - are you concerned about being a resident of Canada? It is a bit of a gray area, but technically, if CRA dragged you to court I suppose still having your house in Canada might stand up in court. If you gave us your concerns on that one you will probably get a better answer than the one I just gave

Moving Companies: Vancouver to San Francisco, Can Anyone Recommend Some Companies

Moving: Canada to USA. What company did u use to ship ur stuff?, Re: Shipping belongings without you (not truck rentals)

Moving to the US (U-Haul vs. Upack vs. ???)

Thanks trailmix.

The concern with the house is with regard to taxes. If I am still considered a resident of Canada I will not have to pay taxes on any capital gains as it is my principal resident. Now if I close the sale after I activate my visa I am concerned with US taxes. My accountant has suggested that I should have a window of time to close things up in Canada but I was wondering what others had experienced.

[Krikit 1,163]

Thanks guys.

Another question:

Has anyone had to sell their house and how did you co-ordinate the sale with the move? If I have to activate the visa first to allow the movers to transport my belongings I will technically be a resident prior to the closing of my house??

You might also find the threads below helpful.

As far as coordinating the sale of your house, well that's just kind of a gamble, sell too soon and you may be looking for an apartment, hopefully it will sell nearer to the time you move so you can pick a convenient closing date.

As for your second question - are you concerned about being a resident of Canada? It is a bit of a gray area, but technically, if CRA dragged you to court I suppose still having your house in Canada might stand up in court. If you gave us your concerns on that one you will probably get a better answer than the one I just gave

Moving Companies: Vancouver to San Francisco, Can Anyone Recommend Some Companies

Moving: Canada to USA. What company did u use to ship ur stuff?, Re: Shipping belongings without you (not truck rentals)

Moving to the US (U-Haul vs. Upack vs. ???)

Thanks trailmix.

The concern with the house is with regard to taxes. If I am still considered a resident of Canada I will not have to pay taxes on any capital gains as it is my principal resident. Now if I close the sale after I activate my visa I am concerned with US taxes. My accountant has suggested that I should have a window of time to close things up in Canada but I was wondering what others had experienced.

Here's my story. (And I'm sticking to it. lol) I sold my house before I left Canada but it didn't close until after I was in the US. Because the sale was done prior to my departure I wasn't taxed as a non-resident. However, because I had already moved by the closing date the lawyer had to obtain a clearance letter from Revenue Canada. If you owe back taxes they will not clear the sale until they're paid. If you are expecting a profit from the sale the lawyer will pay Canada Revenue out of those monies. So, anywhooo.... all I did was sign all the documents with my lawyer prior to my departure and everything was taken care of on the agreed closing date.

And ditto to what Kathryn said about the movers. I had 3 or 4 moving companies come in and give me a quote, then chose the best deal. Make sure you read the mileage costs and gas fees so that you're comparing apples to apples when choosing the best quote. For example, some companies will charge you $0.xx per mile while others will charge you $x.xx per mile. You have to read the fine print.

[OBX 51]

Krikit:

I'm still a bit confused.

Doesn't the closing date represent the actual date of sale? So if I move down prior to closing but after signing a contract to sell would I be considered a US resident with foreign assets or a Canadian selling a principal resident (which would not result in any taxes because I would be exempt on any capital gains as it is my principal residence)??

When you say

If you owe back taxes they will not clear the sale until they're paid.

Do you mean any personal taxes or taxes on profit from the house?

Thanks for sharing your experience. I really hope I will be able to move prior to any closing date - the market is very slow in my area and I would hate to have to wait to sell after waiting so long for a visa.

Edited January 6, 2009 by OBX

[Krikit 1,163]

Krikit:

I'm still a bit confused.

Doesn't the closing date represent the actual date of sale? So if I move down prior to closing but after signing a contract to sell would I be considered a US resident with foreign assets or a Canadian selling a principal resident (which would not result in any taxes because I would be exempt on any capital gains as it is my principal residence)??

Sorry for being so confusing, OBX. WRT date of sale, they'll use the contract date..... not the closing date. So if you're still a resident of Canada at the time you sign the sales contract, then you won't be considered a US resident with foreign assets. Therefore you won't be subject to capital gains.

When you say

If you owe back taxes they will not clear the sale until they're paid.

Do you mean any personal taxes or taxes on profit from the house?

There won't be any capital gains on the property since it's your principal residence and you're a resident of Canada. (Assuming you sell prior to your departure.) If you move to the US prior to the closing date you will be required to obtain a letter of clearance from Revenue Canada before any funds are released to you. The lawyer will take care of this for you..... there's nothing, specifically, that you need to do except sign on the dotted line. So this is what will happen:

1. You sign the contract on the sale of the house.
2. You go to your lawyer, explain the situation, he/she will explain the process, then request a clearance from Revenue Canada.
3. Revenue Canada will revue your taxes and either send a letter of clearance or submit a letter of taxes owing.
4. You go back to your lawyer, sign the closing documents, and give them the keys to the house.
5. You move to the US.
6. The house closes and the lawyer receives the payment. He/she pays off what's outstanding, takes their cut, then sends you the rest.
7. The end.

[OBX 51]

Krikit:

I'm still a bit confused.

Doesn't the closing date represent the actual date of sale? So if I move down prior to closing but after signing a contract to sell would I be considered a US resident with foreign assets or a Canadian selling a principal resident (which would not result in any taxes because I would be exempt on any capital gains as it is my principal residence)??

Sorry for being so confusing, OBX. WRT date of sale, they'll use the contract date..... not the closing date. So if you're still a resident of Canada at the time you sign the sales contract, then you won't be considered a US resident with foreign assets. Therefore you won't be subject to capital gains.

When you say

If you owe back taxes they will not clear the sale until they're paid.

Do you mean any personal taxes or taxes on profit from the house?

There won't be any capital gains on the property since it's your principal residence and you're a resident of Canada. (Assuming you sell prior to your departure.) If you move to the US prior to the closing date you will be required to obtain a letter of clearance from Revenue Canada before any funds are released to you. The lawyer will take care of this for you..... there's nothing, specifically, that you need to do except sign on the dotted line. So this is what will happen:

1. You sign the contract on the sale of the house.
2. You go to your lawyer, explain the situation, he/she will explain the process, then request a clearance from Revenue Canada.
3. Revenue Canada will revue your taxes and either send a letter of clearance or submit a letter of taxes owing.
4. You go back to your lawyer, sign the closing documents, and give them the keys to the house.
5. You move to the US.
6. The house closes and the lawyer receives the payment. He/she pays off what's outstanding, takes their cut, then sends you the rest.
7. The end.

Thanks so much - that is such a relief to know. This will give me much more flexibility in moving once the time comes. Trying to co-ordinate the process between worrying about when the visa come through, how to activate it but still tie up matters in Canada has had my head spinning. I guess the issue with Revenue Canada is just to make sure you don't fly the "Canadian" coop if you owe the government any $$.

Again thanks so much for taking the time to explain it to me. I really appreciate it.

[Krikit 1,163]

Thanks so much - that is such a relief to know. This will give me much more flexibility in moving once the time comes. Trying to co-ordinate the process between worrying about when the visa come through, how to activate it but still tie up matters in Canada has had my head spinning. I guess the issue with Revenue Canada is just to make sure you don't fly the "Canadian" coop if you owe the government any $$.

Again thanks so much for taking the time to explain it to me. I really appreciate it.

No problemo.

But I know how you feel. It's pretty huge. I thought I might lose my mind at the time. Oh wait. I think I did.

[MsZ 6]

Ontario residents have to remain in Ontario 60 days post-closing to be considered resident if you don't want RC to withold 25% of the sale price.

[Krikit 1,163]

Ontario residents have to remain in Ontario 60 days post-closing to be considered resident if you don't want RC to withold 25% of the sale price.

Hmm. I was an Ontario resident. I think some clarification would help..... Revenue Canada will only hold the funds if you owe them back taxes and they haven't been paid, whether you are within Canada or not. This is why the Certificate of Compliance is required. You do not have to remain in Ontario 60 days post-closing.

[OBX 51]

Ontario residents have to remain in Ontario 60 days post-closing to be considered resident if you don't want RC to withold 25% of the sale price.

Hmm. I was an Ontario resident. I think some clarification would help..... Revenue Canada will only hold the funds if you owe them back taxes and they haven't been paid, whether you are within Canada or not. This is why the Certificate of Compliance is required. You do not have to remain in Ontario 60 days post-closing.

I certainly hope not.

What exactly does "withold 25% of sale price " mean? Does RC hold onto the 25% and then release it to you after 60 days?

Is there any part of this process that is straightforward? ?

Edited January 8, 2009 by OBX

[trailmix 77]

Ontario residents have to remain in Ontario 60 days post-closing to be considered resident if you don't want RC to withold 25% of the sale price.

Are you saying that Revenue Canada has a separate tax law for Ontario residents?

Edited January 8, 2009 by trailmix