# Likely moving to US - what to do with house?



## Mandra (May 16, 2012)

It is likely that I will be getting married and moving permanently to the US. Since my SO already has a house, we need to consider what to do with mine, whether it's better to sell it or rent it. I'm hoping that people can suggest things I need to consider in making the decision that I may not have thought of. Also, does anyone know, or know where to find out, the tax implications of a US resident owning rental property in Canada?

TIA!


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## Spudd (Oct 11, 2011)

The real estate market is generally thought to be at a high point right now. If you rent it out, you'll need to find someone to manage it for you, and while I have no idea what the tax implications of this are, I bet there are some. If it were me, I would just sell it - way less hassle.


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## kcowan (Jul 1, 2010)

Owning a property can keep you as a Canadian resident for tax purposes. I would sell it.


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## Feruk (Aug 15, 2012)

Why not sell and buy two for the same price down south where the market might actually appreciate?


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## none (Jan 15, 2013)

We had a huge nightmare with CRA when we sold out house. Not to get too far into it but basically they wanted to tax the house as a gain. We hired an expensive accountant to deal with it and fix it. It sucked.

Renting a house from away is a nightmare. Just sell the thing - Canadian housing is likely in bubble territory so lock in those gains now and go buy in a lower market down south.


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## gibor365 (Apr 1, 2011)

If you want to move your "tax home" to US, it's better to sell house.... you will be filling up very long form indicating what you are leaving in Canada when you immigrate., the less staff you leave, more chances that you can dump CRA 

Like others I'd sell house....


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## gibor365 (Apr 1, 2011)

none said:


> We had a huge nightmare with CRA when we sold out house. Not to get too far into it but basically they wanted to tax the house as a gain. We hired an expensive accountant to deal with it and fix it. It sucked.
> 
> .


You can have nightmares with CRA at any time  they are real bustards who lives (and lives very good - just check their salaries) on our taxes and try to f%$# us every time they can.


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## Cal (Jun 17, 2009)

Sell. Take your profits and run, no worries about having a rental property in another country to deal with.


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## fergusonsd (Dec 30, 2012)

In my opinion assuming your market is good for renting, I would hire a management company to manage your rental and just leave it to them. They will find you tenants, collect your rent and maintain the property. Of course if you need the money to start your lives in the U.S then that's a different story but it seems like you will have a solid base when you move south. I'd keep the property, pay someone to deal with it, forget it for twenty years the reap the benefits.


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## gibor365 (Apr 1, 2011)

fergusonsd said:


> In my opinion assuming your market is good for renting, I would hire a management company to manage your rental and just leave it to them. .


it's good in theory, not sure about real life


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## Berubeland (Sep 6, 2009)

I have dealt with quite a few owners who are out of the country. In the US it's a particular pain because the management company has to fill out paperwork and maintain a special account to pay your taxes on your rental income or withhold 25% of the rent or apply for an exemption. Other owners get a rental company and then get the tenants to pay the rent directly to them. I'm not sure what CRA does in those cases. 

A number of factors can influence your decision, including what it will cost you to break your mortgage and if you are able to break even or profit, if you need the capital or income. You may well want to keep the house for a few years to see how things work out and keep a pied a terre here in Canada for a while.


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## none (Jan 15, 2013)

Trust me, if you're moving to a decent place I hardly doubt you'll want to come back to kanuckistan.


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## the-royal-mail (Dec 11, 2009)

Sell the house. Don't get into the aggravation of renting unless you've done the math (including ALL the costs, not just the mortgage payment) and it's a whopper of a deal for you. I've done what you are considering and lost thousands that I'll never get back. Don't do it.


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## Mandra (May 16, 2012)

Thanks everyone! That's pretty much what we were thinking, but wanted to make sure we'd looked at all the options.


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