Sold home in Canada, I am US/Can dual citizen

Hi everyone, it is my first post. I hope someone can help me!
I am a CDN/US dual citizen as is my son, but husband is CDN only. Lived in Canada past 5 years, worked across border in U.S. Filed CDN and US tax returns all of that time.
Lost job last Feb, so we decided to sell condo and all moved to U.S. where I am now finding finding employment. We transferred our condo sale money to U.S. bank (over $200K) and are living off of that.
We kept our CDN insurance and bought 6 mos. traveler's insurance. We have now been in U.S. 2 months.
My husband's income in Canada was very minimal the past 5 years, so we decided it was better to move to the U.S. where I could find a higher paying job.

Here is the big question. Do we pay taxes to Canada for 2010 since we lived there most of 2010 and still have our health insurance through Canada for up to 6 months since we left? We came here as 'visitors' since I didn't know if I would find employment here. We would go back to Canada if I cannot get a good job, but most likely I will.

We kept our bank accounts in Canada open and have funds in them as well. We have the health insurance still. My husband is only a Canadian citizen( not dual) so has no status here in U.S. yet. We are using a friends Canadian address to get our mail, etc, sent there for the time being. Do we have to pay some time of 'exit tax' on the profit from selling our condo if we declare that we are nonresidents of Canada?

Not sure what to do at this time. Don't want to declare nonresidency since we don't know if this move will work out or not. Certainly don't mind paying tax to Canada on our income for 2010. Can I say that I have left Canada as of September of 2010 but my husband has not, since he has no status here?

Complicated! Thanks to anyone who could give me a little guidance here. I have a tax man back in Washington state, but he's not very knowledgeble sadly about my complicated situation.

-- Mon Nov 22, 2010 12:57 pm --

P.S. Am really most concerned about paying some extra tax on the gains from our condo sale. We want to use this money to put a downpayment on a home here in the U.S. if this is where we will live. Hopefully we would purchase a home in the next few months when I feel I have some job security.
thanks again.

What status does ur Canadian husband have in the USA??

I answer these tax questions at forums.serbinski.com.

Flames quaetion about your husband's status is an immingration question that shouldn't affect your tax situation (but I'll let you hash that one out with flames).

see you on serbinski.

What status does ur Canadian husband have in the USA??

He doesn't have any status in the U.S. Just a visitor without a visitor visa. If he stays longer than 6 months, I have to apply for a visitors visa for him and we will start the U.S. green card application.

-- Tue Nov 23, 2010 12:12 am --

I answer these tax questions at forums.serbinski.com.

Flames quaetion about your husband's status is an immingration question that shouldn't affect your tax situation (but I'll let you hash that one out with flames).

see you on serbinski.

I will check out serbinski. Thanks in advance!

lot of info on visajourney.com since he is in the USA already, he may just want to AOS (ADJUST OF STATUS) I'm sure he would have no problems going that route. But by the books, one has to have no intention of staying in the USA and then out of the blue decide to stay. Many Cdns go this route with ease. Doesn't take that long either. Just keep in mind that he should NOT leave the USA until he gets the green card. Well he can always leave the USA with ease, its the getting back into the USA that is the problem. Think 1 poster on here last week stated it took around 3 months from start to finish. Compare that with the regular Cr-1 (ir-1) route of a a year or longer, your laughing,lol best of luck

one has to have no intention of staying in the USA and then out of the blue decide to stay.

The other condition of tourist status is a bona fide full-fledged home in canada all the while you are visiting.

There is a distinct risk right now for you if he should ever go back to canada before at leat getting advanced parole (middle step of AOS process), since as you stated you are using a friend's address which means you don't have a home in canada.

This is exactly how couples get parted for months by a savvy border offier.

Just playing devils advocate---One usually has to have an interview in the USA as part of the AOS process and the interviewer could state that he had intention all along of staying in the USA since they sold the house in Canada and his USA citizen wife moved back to the USA and deny him! Just saying, I personally could care less how one comes to the USA,As I have said before, many go this route with no problems! Just dont say one had the intention all along of staying,lol

oh, i don't see a problem with what they are doing, as long as they adjust soon. the interview will not be a problem, as this type of 'fraud' is always forgiven for marriage-based immigration, particularly for those already married. besides, a cbp 'error' won't be held against them by uscis.

their REAL problem, evidenced by countless others' experiences, is getting stuck on the cdn side after having 'visited' and then tried to enter US again after a short vist to mummy's up in canada.

the favour the cbp did them in letting the spouse in without proper visa, could come back to bite them, if he should ever need to leave US and try to come back.

I'd never use the word "ALWAYS" usually it is, depends how they answer the questions at the interview--which from my reading on VJ is very basic! Only a moron would state, ya, I had the intentions of coming to the USA and staying,lol

Interesting that this has become an immigration post rather than the "taxation" post. I would really be interested in how this is worked out in terms of the original question. My gut tells me that if you sold the condo after living there as your primary residence - whatever you did afterwards does not matter - whether you left for the moon or became a citizen of Japan - you should not pay capital gains. Your husband's status in the US should not matter at all - the only thing that matters is his "tax" and "resident" status in Canada - did he primarily reside in that condo? If the answer is yes, then no capital gains should be paid.

As far as the immigration is concerned, someone said that you would not be held liable for the CBP mistake - YEAH RIGHT! They will hold you accountable for anything that happens at the border. In my instance, they were not supposed to let me in without a waiver (tried political asylum in the US before being denied and coming to Canada on points system). THEY made a mistake and let me in - 7 times - now I am paying for it by being harrassed and having to file two waivers - the original one and the second one for entering "illegally". So don't be so sure about not being held liable for someone else's mistake.