US tax on selling property in Canada

[SergeP]

I am moving to US from Canada leaving my house (currently my principal residence in Canada) as my vacation home. I am going to get a real estate FMP assessment of the property for any future transaction with the house. If I sell this house later on I have to report the capital gain or loss in Canada. Will this gain or loss need to be reported also to IRS if I am a US resident at the time of selling?

[nelsona]

In both US and Canada, you will only need to report the gains from after you make it a rental.

[Feduk]

Generally, if you're a US resident at the time of selling, you might need to report the capital gain or loss to the IRS. But tax laws can change, so it's essential to consult with a tax professional to get the most up-to-date advice.
I'm curious about how your situation turned out. It's always interesting to hear about real experiences in these matters.
And if you ever need guidance on managing properties, you might want to check out Kingston Property Management. They can provide insights into the real estate market. Here's the link: https://axonproperties.ca/

[SergeP]

No progress in this matter. I am still keeping this house in Canada as my vacation home.

[SergeP]

This is the information that may be of interest for the others in the same situation.
We moved to US in 2022. We kept our home in Canada for two years (did not convert it to a rental).
We sold the house in 2024. Applied to CRA for a Certificate of Compliance in June 2024. We received the Certificate in December 2024. CRA approved our form T2062 with No capital gains shown - the home prices were stable for the last two years.
Because of no capital gain we may not need to file a tax return for 2024.

[nivikasha]

We are in same predicament, where our lawyer is insisting a withholding of 50% on gross and due to which we would be under water and would not be able to close.