I was hoping to get more clarity around a specific scenario:
As a Canadian that owns a principal residence in Canada and move to the states on a TN-Visa I understand that you have 1 year to sell the residence without having to pay the USA taxes on it.
1. If I keep the property and maintain ties with Canada until I return to Canada in the future does that avoid any tax on the property gains?
2. If I already plan on selling the residence and move into a new property that is expected to be built during the same year that would be my new principal residence but completion occurs after starting work in the states Is it still considered my primary residence?
TN-Visa principal residence and pre-construction completion
Moderator: Mark T Serbinski CA CPA
Re: TN-Visa principal residence and pre-construction completion
First, you are incorrect that you have one year to sell without US tax. You have one year to sell without CANADIAN tax.
You have no US tax, if you have lived in the house two years, and then you get 3 years before US tax,
1, No, you will be liable in canada for the gains incurred while you were away. You will not have US tax assuming you don't become US citizen.
2. You cannot have a principal residence in Canada if you are non-resident. And you would no longer be satisfying the 2 year residency requirements for no US tax.
You have no US tax, if you have lived in the house two years, and then you get 3 years before US tax,
1, No, you will be liable in canada for the gains incurred while you were away. You will not have US tax assuming you don't become US citizen.
2. You cannot have a principal residence in Canada if you are non-resident. And you would no longer be satisfying the 2 year residency requirements for no US tax.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing