Sale of Home in Canada

shabooga · Post by **shabooga** » Tue Feb 07, 2017 11:36 pm

I'm a Canadian living and working in the USA under TN status. I am now considered a deemed non-resident of Canada even though I still have significant residential ties to Canada. My spouse still lives in Canada in the principal residence we bought jointly in 2012 before I moved down to the USA in 2015. I am now renting an apartment in the USA and do not own any property down here. We are closing the sale on this Canadian house end of the month. It appears that my spouse, who is still a Canadian resident, can claim a principal residence exemption. Would we split the capital gains 50/50? If so not sure how I would handle my side of the equation given I'm now considered a Canadian non-resident. Could the principal residence exemption still apply to me?

nelsona · Post by **nelsona** » Wed Feb 08, 2017 8:46 am

She gets the full Principal residence on her half of house, you get to claim principal residence for the time you lived in Canada PLUS ONE YEAR. So the cap gains you might have should be minimal.

You do not have to pay any US cap gains.

You must still file the required paperwork as a non-resident of Canada selling a property at the time of sale.

shabooga · Post by **shabooga** » Wed Feb 08, 2017 10:23 pm

Thank you!