Property sale in Canada - T2062 t2062A T1161 --

QUESTION:Hello ! I am a Canadian citizen moved to USA in Jan.1.07. I am selling my house after 10 months(empty after I left).I still have bank a/c's and my wife is a Canadian PR. Will I have problems to sell my house in Chatham, Ontario. Please reply - 309-333-xxxx.Regardsxxxxx xxxxxxxx

------------------------------------------------david ingram replies:I see you sent this twice - sorry it was not answered but I do get 30 to 100 a day and can not even begin to answer them all.This has been answered for other people however in the time between the two questions.Because you are not living in Canada, anyone buying the house is required to withhold 25% of the GROSS sale price unless you fill in and file forms T2062 and T2062A with the CRA within ten days of the actual sale.This form would take into account that the house was your personal residence up to the day you left.For 2007, you must file form T1161 as a departing resident. Failure tp file Foprm T1161, can end up with a $2,500 fimne as shown below. Happy to look after these departing Canda returns for you.These similar questions were answered on Feb 17 for instance.------Hi David,

(1) I am a Canadian Citizen and employed in Canada from Jan 01, 2007 toJune 30, 2007 and my tax was deducted at source. I have received T-4

(2) Since the employer closed down the facility, I receivedunemployment benefit until November 04, 2008. I have not received any paper from EI income so far

(3) Since November 05, 2007, I am working in USA under TN-1 work permitand i have W2 from my employer

Can you please tell me how much it would cost for filing tax againstabove income? Which documents I need to provide you?

Next year, I would have only income from USA and how much it would costto file tax return. Do I have to file tax return in Canada for theyear 2008 against USA employment earning only? It is temporary yearlybase job contract. I intent to be a Canadian Citizen.


david ingram replies:

If you do not want to report your US income to Canda, you need to filea departing Canada return including form T1161.. If your house isrented out, you should have filed form NR6 BEFORE leaving the country.

Our fees are outlined in the Disclaimer below following some olderquestions.

QUESTION: Hi David,I am Canadian citizen, worked in Canada for the first 5 months of 2006.then moved to US and worked then for the rest of 2006. I have income=66rom Canada employer, canadian bank and US employer. I filed tax returnon my US income to IRS already. I haven't done canadian tax return yet.I had thought I only need to file canadian tax return on my canadianincome. But it seems both CRA and IRS requested to report my worldincome to both. I am confused. What should I do to file the tax returnto both? More specially, I received NR4 slip from CIBC bank. I couldnot find where to enter this form when I used How can I enterUS W2 form into any Canadian tax form?How can I enter T4 slip into US tax return form? thanks a lot!_______________________________________________________________
david ingram replies:

An NR4 does not go on the Canadian return. It goes on Schedules B and1116 of the US return

The T4 does not go on the US return unless you are filing as a yearround resident as in 2 below.

I am too busy to come up with a new answer but this older one will giveyou an idea.

QUESTION: Hi David,I really need your help in filling U.S tax and I am getting mixedmessages which forms to file. I am a Canadian Citizen in U.S on TN visafor more than a year. I have RRSP in canada over 10,000 put in fixedbond and saving account in a bank. What do I need to file here and whatforms do I need to fill. Do I still have to file tax in Canada forcanadian earning? Please help.____________________________________________________
david ingram replies;

You need to file a departing Canada tax return and file T1161 if youleft more things than your RRSP behind. The Canadian return will onlyinclude Canadian earnings although if you had a Home Buyers Plan, it isall due and taxable on the departing Canada return unless you have paidit back.

For the US, you have two choices:

1. File a 1040NR dual status statement and a Dual Status 1040 IncomeTax return with no standard deduction


2. File a full 1040 which includes your Canadian income and gives youa full standard deduction and the right to file a joint return ifmarried. This is usually the best if you left Canada early in the yearas you did.

If you can't figure it out, file an extension form 4868 (find it at

and then send the information to us at the address in blue below tocomplete for you.


We moved to the US in December 2004. At the time that we did our 2004taxes, we did not have any 2004
US income to worry about, so we used to do our Canadiantaxes. We have a house in Canada that we
kept with the intent of renting it out, and were unaware of therequirement to file a T1161 until we began
working on our 2005 taxes with the assistance of an accountant.By the time he got involved, it was already
late. In January 2007, CRA assessed a late filing penalty forboth myself and my husband as joint owners of the
property. The statement was sent to our old address, even thoughwe updated our address at the time we sent
in our 2005 tax returns. My question is this: Is there any waythat we can get the late filing penalty forgiven?
We have done everything else by the books, and we did file theT1161 when our accountant brought it to our
attention. Thank you.
david ingram replies:

The T1161 for a departing Canadian is due on April 30th of the yearfollowing the departure. The penalty is a minimum of $100 or $25.00per day to a maximum of $2,500. This is the same penalty for the latefiling of a T3 return with distributions.

I know of no method of officially cancelling the $2,500 penalty youwill each have received. You could try writing to the FAIRNESSCOMMITTEE and explain the situation and they might cancel it. for$5,000, it is certainly worth the effort.

You can start looking up the rules for the FAIRNESS COMMITTEE here:

I do not expect them to agree but they might.

You might write to Prime Ministrer Stephen Harper as well. The penaltyis unfair because although easy to find if you know what you arelooking for, NO ONE knows about it automatically.

The tax preparation programs do not tell you to fill it in when you puta date in for departing Canada.

The $2,500 penalty is imposed after 100 days.

On February 11, 2008, DavidIngram wrote:

It is very unlikely that blind or unexpected email to me will beanswered. I receive anywhere from 100 to 700 unsolicited emails a dayand usually answer anywhere from 2 to 20 if they are not from existingclients. Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject lineand get answered first. I also refuse to be a slave to email and donot look at it every day and have never ever looked at it when I am outof town.
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However, I regularly search for the words"PAYINGCUSTOMER" and always answer them first if they did not get spammed out.For the last two weeks, I have just found out that my own email notesto myself have been spammed out and as an example, as I wrote this onDec 25, 2007 since June 16th, my 'spammed out' box has47,941 unread messages, my deleted box has 16645 I have actually lookedat and deleted and I have actually answered 1234 email questions forclients and strangers without sending a bill. I have also put aside847 messages that I am maybe going to try and answer because they lookinteresting. -e bankruptcy expert US Canada Canadian American Mexican Income Tax service and help
Therefore, if an email is not answered in 24 to48 hours, it is likely lost in space. You can try and resend it but if important AND YOU TRULY WANT OR NEEDAN ANSWER from 'me', you will have to phone to make an appointment. Gillian Bryan generally accepts appointment requests for me between10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, LosAngeles) time at (604) 980-0321. david ingram expert US Canada Canadian American Mexican Income Tax service and help.
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Disclaimer: This question has been answered without detailed information orconsultation and is to be regarded only as general comment. Nothingin this message is or should be construed as advice in any particularcircumstances. No contract exists between the reader and the author andany and all non-contractual duties are expressly denied. All readersshould obtain formal advice from a competent andappropriately qualified legal practitioner or tax specialist for experthelp, assistance, preparation, or consultation in connection withpersonal or business affairs such as at If you forward this message, this disclaimer must beincluded." e bankruptcy expert US Canada Canadian American Mexican Income Tax service and help.
David Ingramgives expert income tax service & immigration help to non-residentAmericans & Canadians from New York to California to Mexico family, estate, income trust trusts Cross border, dual citizen - out ofcountry investments are all handled with competence & authority.
Phone consultationsare $450 for 15 minutes to 50 minutes (professional hour). Please notethat GST is added if product remains in Canada or is to be returned toCanada or a phone consultation is in Canada. ($472.50 with GST if inCanada) expert US Canada Canadian American MexicanIncome Tax service and help.
This is not intended to be definitivebut in general I am quoting $900 to $3,000 for a dual country taxreturn.
$900 would be one T4 slip one W2 slipone or two interest slips and you lived in one country only (but werefiling both countries) - no self employment or rentals or capital gains- you did not move into or out of the country in this year.
$1,200 would be the same with onerental
$1,300 would be the same with onebusiness no rental
$1,300 would be the minimum with amove in or out of the country. These are complicated because of theback and forth foreign tax credits. - The IRS says a foreign tax credittakes 1 hour and 53 minutes.
$1,600 would be the minimum with arental or two in the country you do not live in or a rental and abusiness and foreign tax credits no move in or out

$1,700 would be for two people with income from two countries

$3,000 would be all of the above andyou moved in and out of the country.
This is just a guideline for US /Canadian returns
We will still prepare Canadian only(lives in Canada, no US connection period) with two or three slips andno capital gains, etc. for $200.00 up.
With a Rental for $400, two or threerentals for $550 to $700 (i.e. $150 per rental) First year Rental -plus $250.
A Business for $400 - Rental andbusiness likely $550 to $700
And an American only (lives in the USwith no Canadian income or filing period) with about the same things inthe same range with a little bit more if there is a state return.
Moving in or out of the country orpart year earnings in the US will ALWAYS be $900 and up.
TDF 90-22.1 forms are $50 for thefirst and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to$100.00 each.
18 RRSPs would be $900.00 - (maybeamalgamate a couple)
Capital gains *sales) are likely$50.00 for the first and $20.00 each after that.

Catch - up returns for the US where we use theCanadian return as a guide for seven years at a time will be from $150to$600.00 per year depending upon numbers of bank accounts, RRSP's,existence of rental houses, self employment, etc. Note that thesereturns tend to be informational rather than taxable. In fact, ifthere are children involved, we usually get refunds of $1,000 per childper year for 3 years. We have done several catch-ups where the clienthas recieved as much as $6,000 back for an $1,800 bill and one recentlywith 6 children is resulting in over $12,000 refund.

This is aguideline not etched in stone. If you doyour own TDF-90 forms, it is to your advantage. However, if we put themin the first year, the computer carries them forward beautifully.
This from "ask an income trusts tax service andimmigration expert" from or or David Ingram deals on a daily basis with expatriate taxreturns with multi jurisdictional cross and trans border expatriateproblems for the United States, Canada, Mexico, Great Britain, UnitedKingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan,China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia,Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida,Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan,Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, StVincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 stateswith state tax returns, etc. Rockwall, Dallas, San Antonio Houston,Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax andImmigration Tips, Income Tax Immigration Wizard AntarcticaRwanda Guru Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6Non-Resident Real Estate tax specialist expert preparer expatriate antimoney laundering money seasoning FINTRAC E677 E667 105 106TDF-90 Reporting $10,000 cross border transactions Grand Cayman ArubaZimbabwe South Africa Namibia help USA US Income Tax Convention. Adviceon bankruptcy e bankruptcy expert US Canada Canadian American Mexican Income Tax service and help .

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