selling the family home
Moderator: Mark T Serbinski CA CPA
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selling the family home
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.
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
See more information on the IRS site here: http://www.irs.gov/faqs/faq/0,,id=199598,00.html
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.
What you did with the proceeds has no bearing.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing