Author Topic: Moved partially in 2017 and 2018, how do I manage the tax impact  (Read 1020 times)

kaypinkHH

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Hi, another question for you smart people:

I moved from ON to NS in October to start a new job. Mr. HH moved in November, claimed EI until mid December and then started working mid December. We lived temporarily with my ILs during this time. We never transferred our address/drivers license/health card during this time.

We closed on our house sale in Ontario January 25, 2018.  Bought a new house in NS, Closed Jan 31st, 2018. At that point we got all our NS paperwork in order with our new address.

How should we file our taxes for 2017? Since we were both employed in NS at the end of 2017 do we file them in NS? Or can we claim them in ON since our primary residence was technically in ON at the end of 2017?

I know for moving expenses we can claim any 2017 incurred expenses in 2017, and then 2018 expenses (the big ones) will be in 2018 taxes.

Anyone dealt with this situation before?

Thanks!

Prairie Stash

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Re: Moved partially in 2017 and 2018, how do I manage the tax impact
« Reply #1 on: March 07, 2018, 07:49:45 AM »
Where did you reside on December 31, 2017. SimpleTax keeps it pretty simple when answering this question. If Mr. HH was residing and working in NS on Dec. 31 in NS, he's a resident of NS. If you were also working and residing in NS, you were a resident of NS.

Was there any indication you planned to return and live in Ontario? I'm guessing on Dec. 31 the house was for sale, you had no ties, just some unfinished paper work. Did you have any intent to maybe move back to Ontario? In your post you gave no indication you had ties to Ontario, can you provide better examples of why you might be a resident of Ontario? I'm assuming you had your mail forwarded to NS in November, thats my way of transferring my address while I spend a year procrastinating on all the other offical documents.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/getting-a-tax-return/which-forms-book-should-you-use.html

This feels like the opening of a terrible discussion involving Mike Duffy, where did that guy live?

kaypinkHH

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Re: Moved partially in 2017 and 2018, how do I manage the tax impact
« Reply #2 on: March 07, 2018, 09:17:41 AM »
That makes sense the way you explained it.

You are right, we had no real ties/intent to return with Ontario by Dec 31st, so we will pay ALL THE NS taxes :P. Should have delayed Mr.HH moving by a few months.

Don't want a Mike Duffy situation going on for sure :).

chickinyow

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Re: Moved partially in 2017 and 2018, how do I manage the tax impact
« Reply #3 on: March 07, 2018, 12:34:33 PM »
You have to file where you were living on December 31, 2017 and pay taxes in that province (unfortunately - since I think NS is higher). It doesn't matter if you lived elsewhere for 11.5 months of that year, it is based on where you live December 31.