For individuals moving from Canada to the U. S. and planning to sell their Canadian home, there are different Canadian and U.S. tax implications. To avoid or minimize tax liability, specific criteria need to be met around the questions of whether tax residency is in Canada or U.S. when the sale occurs and if the home qualifies as a principal residence. If sold while still a Canadian tax resident, a status that can be maintained for a period beyond the moving date, exemptions apply. Additional compliance requirements need to be met when the property is sold by a U.S. tax resident.
Infographic: Income Tax Implications of RRSP Withdrawals as a Non-Resident of Canada
If you have moved from Canada to the U.S., the normal intricacies of tax issues become particularly complicated in certain circumstances. In particular, this is so if you are considering taking a distribution as a non-resident of Canada for use in the U.S. Advice from Cardinal Point can ensure that you go about this on the most tax-effective basis.
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