selling the family home

dualcapgainer · Post by **dualcapgainer** » Mon Aug 15, 2011 6:50 pm

Born in the U.S. and moved after 28 years. I've had landed immigrant status in Canada for 40 years and citizenship for 11. Family home was sold about 3 years ago. It was our principle residence for 20 years. Bought a new home a few months before the old house sold. Over 20 years there was a substantial gain in value half of which went into paying off the credit line that was used to buy the new home. Is there a capital gain tax to be paid to the U.S? And if so how would that be reported.

mcmoxley · Post by **mcmoxley** » Tue Aug 16, 2011 3:09 pm

US exempts capital gains on the sale of your principal residence, just like Canada, but only up to a point. You can exclude from income a gain of up to US$250,000 if you're single, US$500,000 if legally married (i.e., not common-law). If you have a gain that exceeds the amount you're allowed to exclude, you'll report the gain on Schedule D of a 1040.

See more information on the IRS site here: http://www.irs.gov/faqs/faq/0,,id=199598,00.html

nelsona · Post by **nelsona** » Wed Aug 17, 2011 11:35 am

This issue has bitten quite a few US citizens living in canada. As McM said, your exemption has a limit, and you must take into account the exchange rate when you bought and the one when you sold in determining your gain in USD. If it exceeds 250/500K there will be tax to pay.

What you did with the proceeds has no bearing.