US Captal Gains on sale of Cdn residence

[jraf]

US citizen resiident in Canada since '77.
Filed US returns until ca 2000 when an accountant told me I would likely never owe Us taxes (I hadn't to date).
I just recently became aware of the VODI issue and am absolutely overwhelmed and discouraged by it all.
My wife and I divorced in 2010 and sold the marital residence.
In 2009, I attended a tax seminar in Canada for US citizens. The issue of cap gains on the primary residence came up. The presenters statement was that yes you do have to report the gain BUT there is a legal work around which does eliminate taxatiion in the US. Recent searches don't seem to bear this out and I've lost his contact info, so my question is:
House sale was $900K (less realtor, legal fees, etc)
Purchase price was $146K (no rcords of associated fees)
No records of mortgage interest.
I could probably get records of property taxes.
With the above numbers, my share of that gain is ~$380K.
Am I on the hook for tax on a gain of $130K?
My income that year was 5.5K.

Any help would be appreciated.

OK, another question. Does anyone have a notion of my chance for a successful reconciliation of trying to reconcile with the IRS via quiet disclosure and simply back filing returns and FBARs?

Thanks

[nelsona]

Yes, Americans in canada, are on the hook for cap gains from the sale of their primary residence if it exceeds the $250,000 mark.

It is made worse by the fact that the Cdn dollar has grown so much vs USD over that past years.

A stratgery for others in your boat is to sell your house more often, and not wait until it has grown so much in value.

Your income for the year was not 5,5K, it was 450K, which shuld be enough to pay the taxes on $130 gains.

You don't need any of these other records you seek.

[jraf]

Not the news I was hoping for nelsona, but thank you for your reply.