Dual citizens want to sell canadian house when son is living

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marvinsilva
Posts: 12
Joined: Mon Jan 26, 2009 11:37 pm
Location: Arizona

Dual citizens want to sell canadian house when son is living

Post by marvinsilva » Wed Apr 25, 2018 2:25 pm

My wife and I are dual citizens. We want to sell a house in Canada when our son is living for the last 8 years. Previously we rented the house for 8 years and before that we lived in the house for about 9 years. Is our son living in the house considered our primary residence? he is not renting. We want to sell it privately to him. What are the tax implications? What type of lawyer or accountant I have to contact to do the transaction?
Nica

marvinsilva
Posts: 12
Joined: Mon Jan 26, 2009 11:37 pm
Location: Arizona

Post by marvinsilva » Wed Apr 25, 2018 2:27 pm

I forgot to mention that we live in the US.
Nica

nelsona
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Post by nelsona » Wed Apr 25, 2018 2:39 pm

the fact that uyour son lived there, or is the buyer has no bearing on the sale or the taxation.

the house in Canada CANNOT be considered your primary residence for any of the time you were considered resident in US. It is treated like your cottage. You do get one added year in determining the taxable portion of the cap gains, so 10/25ths of the gains will NOT be taxable gains in Canada, but 15/25th will.

The entire gains will be taxable in US, with credit given for the Cdn tax.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

nelsona
Posts: 16507
Joined: Wed Oct 27, 2004 2:33 pm
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Post by nelsona » Wed Apr 25, 2018 2:46 pm

If the gains in US end up being more than the Cdn gains, there may be some starategis where you gift the house to him (if he is a US citizen), using up some of your estate tax room, but you will need to look into that yourself.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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