My_question_is: Applicable to Another Jurisdiction or Multi-jurisdictions Subject: Moving overseas Expert: taxman at centa.com Date: Tuesday February 20, 2007 Time: 01:27 PM -0500 QUESTION: Hello, We currently have our primary residence in Ontario, have a rental property in California and likely to move to Australia within 6 months. We moved back to Canada not too long ago after many years away. What would you advice we do to minimise taxes all round ? E.g. (1) Would it be a good idea to rent our house in Canada instead of selling it ? We have not decided where or when we'll be retiring.(2) Keep or sell the rental property in California ? Would appreciate any advice you may have for us. Thanks in anticipation. =========================--------- david ingram replies: I just hung up from talking to a lady client who had moved back into their Vancouver Condo after stints in two other cities. When she left she really wanted to sell the condo and I talked her out of it. She was quite happy to move back in with its value doubled. If she had sold Vancouver and bought in the other places, she could not have afforded the buy back in Vancouver. Tax should be the least of your worries. You should be keeping both of your houses unless you absolutely need the money for your Australian venture. If the intent is to stay in Australia, then you should be buying there sooner rather than later. I would suggest that over time, the Ontario property will not do as well as the California property but it really depends upon "where" in Ontario and "where" in California. As an example A Harbour Castle Condo On the water at the foot of Yonge Street) in Toronto will almost certainly do better than a Riverside condo in California. If you can keep them both, keep them both. In the long run they will appreciate and if you do decide to return to either place, there is a home waiting for you at today's cost. You will keep on filing 1040NR and 540NR returns for California and a Section 216(4) rental return for Canada. Minimizing taxes is not the aim - preservation of capital and future worth is / should be the goal. -------------------------------------------- David Ingram's US / Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists My Home office is at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. 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