nelsona:
I have full GC since July 2012. My spouse will obtain hers July 2013. Both Canadian citizens. I was CDN resident until July 2012, my spouse still is.
I own a property jointly with my spouse; it used to be principal residence until I officially departed from Canada to US last year. resident in 2012. I anticipate the sale of the house will generate a gain of $30K. Also, there will be a currency exchange appreciation due to CDN/US$ from acquisition to disposition.
What is the lowest tax hit If I sell in 2013, or 2014:
Option 1. I declare this as my property to US (full US resident in 2012), also declare as real estate to Canada. When house sells, I have to contend with the cap gain tax of 25% and possibly a tax from US due to currency.
Option 2. I transfer the title in my spouse's name, I don't have to declare anything to either country. If the house is sold in 2013, my spouse should not have to declare. But if the house sells in 2014 she will have to file a departure return from Canada as well.
House in Canada; tax impact from selling as NR/resident
Moderator: Mark T Serbinski CA CPA
Canada: the sooner you sell after leaving canada the less you will owe to canada. if you sell with 12 months there is no tax. of course, the clock on your half of the house started ticking in july 2012. your wife's half has not started yet. you would at most owe tax baes on how many months you were non-resident (minus 12), divided by the entire period you owned the house
US: you won't be taxef any of the sale if you sell within 3 tears of deprature from canada, and the us tax would be basred on th e value when you left/leave, not the original acquisition price.
So your cap gains tax oin camada would be minimal in 2013 or 14, and US tax would be non-existent until 2015.
Thre is nothing to"claim" on US return, and no point transferring title. 1/2 is your 1/2 is hers regardless.
The one issue you face when selling is that you need to comply with non-resident selling rules, or you may have tax withheld. your broker should be made awae of your non-res status, to make sure the paperwork is filed before sale.
US: you won't be taxef any of the sale if you sell within 3 tears of deprature from canada, and the us tax would be basred on th e value when you left/leave, not the original acquisition price.
So your cap gains tax oin camada would be minimal in 2013 or 14, and US tax would be non-existent until 2015.
Thre is nothing to"claim" on US return, and no point transferring title. 1/2 is your 1/2 is hers regardless.
The one issue you face when selling is that you need to comply with non-resident selling rules, or you may have tax withheld. your broker should be made awae of your non-res status, to make sure the paperwork is filed before sale.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Yes, but the claearance should be obtained before sale. there is also penalty to watch for for failiure to timely repoert sale.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best