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

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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 »

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
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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 »

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. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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 »

So even I will be no longer a resident alien for US, I still have the $250K gain exemption. Right?
nelsona
Posts: 18311
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 »

Yes, if you sell within 3 years of leaving US, and you lived in it for 2 years.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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