What to do with the primary residence in US when returning to Canada

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
gang.sun
Posts: 4
Joined: Sun Aug 05, 2018 1:37 am

What to do with the primary residence in US when returning to Canada

Post by gang.sun » Sun Aug 05, 2018 3:50 pm

Both my wife and I are working in US right now, but I am planning to go back to Canada later in the year, but my wife will continue to work in US for another year or two. We have bought our house (primary residence) years ago and have substantial gain.

Question, what is the tax implications if we sell the house two years later before my wife returns to US? Do we still have the $500K exemption or we only have her share?

Thanks!

nelsona
Posts: 15951
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: What to do with the primary residence in US when returning to Canada

Post by nelsona » Mon Aug 06, 2018 4:25 pm

She will get $250K exemption of her half of the house when she files 1040. You will get $250K exemption of your half of the house, when you either (a) file jointly with her on 10404, or (b) file your own 1040NR.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

gang.sun
Posts: 4
Joined: Sun Aug 05, 2018 1:37 am

Re: What to do with the primary residence in US when returning to Canada

Post by gang.sun » Wed Aug 15, 2018 12:30 am

So even I will be no longer a resident alien for US, I still have the $250K gain exemption. Right?

nelsona
Posts: 15951
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: What to do with the primary residence in US when returning to Canada

Post by nelsona » Wed Aug 15, 2018 6:35 am

Yes, if you sell within 3 years of leaving US, and you lived in it for 2 years.
Nelsona Non grata. Non pro. Search previous posts. Taking period between now and June off. Will only answer sporadically.

Post Reply