We plan to move to Canada from US in May 2006. Our principal residence in the US has appreciated very well.
- Will we have to pay capital gains tax in Canada for the 2006 tax year if we sell this home in 2006 after moving to Canada?
- Will we have to pay capital gains tax in Canada for the 2006 tax year if we sell this home in 2006 before moving to Canada?
[We will not have to pay captial gain tax in US if we sell this home before May 2009]
Thank you.
Moving to Canada - Selling Home in US
Moderator: Mark T Serbinski CA CPA
If you sell before moving there will be no tax in Canada, since you won't yet be a tax resident.
If you sell after moving, you would <i>at most</i> be taxable on the gains incurred after you arrived, so I would strongly suggest you get a good market evaluation if you move to Canada before selling.
Even if you sell after arriving in US, you could still designate that house as your principal residence for a period of time, up until you bought another home in Canada, or until you rented out the US home.
<i>nelsona non grata... and non pro</i>
If you sell after moving, you would <i>at most</i> be taxable on the gains incurred after you arrived, so I would strongly suggest you get a good market evaluation if you move to Canada before selling.
Even if you sell after arriving in US, you could still designate that house as your principal residence for a period of time, up until you bought another home in Canada, or until you rented out the US home.
<i>nelsona non grata... and non pro</i>