I'm a Canadian citizen who's been a resident of the USA for the past 3 years. I plan to move back to Canada during the summer. I own my principal residence in the USA and plan to put it up for sale soon. Hypothetically, if the contract were to close the day after I entered Canada, is there anything stopping my from reporting a capital loss to CRA on the sale of this house? My ACB would be my realtor's appraisal and my realized loss would be the actual selling price, minus closing costs, minus ACB.
Thanks in advance!
Capital Loss on Sale of House?
Moderator: Mark T Serbinski CA CPA
You can never claim a loss on a non-income producing personal use real property. Your US property would be considered either a home or cottage, neither of which is leigible for a capital loss.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Yes, you could do this. The rental income would be taxable in both countries, and if you held on to the property long enough (3 years) you would lose its primary home status.
There is no real minimum time, but it would have to be rented out, ie. generating rental income, other wise it remains a cottage.
There is no real minimum time, but it would have to be rented out, ie. generating rental income, other wise it remains a cottage.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing