Dual citizens want to sell canadian house when son is living
Moderator: Mark T Serbinski CA CPA
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- Joined: Mon Jan 26, 2009 11:37 pm
- Location: Arizona
Dual citizens want to sell canadian house when son is living
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
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- Posts: 18
- Joined: Mon Jan 26, 2009 11:37 pm
- Location: Arizona
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.
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. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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. Please Search previous posts, no situation is unique as you might think. Happy Browsing