Cross border Capital Gain Tax on Canadian Property

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zam
Posts: 1
Joined: Sat Oct 27, 2018 3:04 pm

Cross border Capital Gain Tax on Canadian Property

Post by zam »

Hi,
I would to inquire that If i convert my principle Canadian property into Rental property then move to US permanently and sell it after 10 years, Can I claim Capital Gain exemption on the portion of the capital gain when I was living myself.

Oct 2017 - Bought Primary resident in Canada for $650K
May 2018 - Got US Green Card (Fair Market value of the property $750K)
Jan 2019 - Moving to US permanently (Fair Value of the property $850K)
Jan 2030 - let's say Sell it for $1.5mm

How much capital gain tax I would give to CRA and IRS at the time of selling ? Can I claim Cap Gain Exemption on the capital appreciation of $200K since it was appreciated during the time I was living myself (850-650 = 200K )

Thanks,
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cross border Capital Gain Tax on Canadian Property

Post by nelsona »

Yes. You will be able to claim that portion as tax-free, both in Canada and US.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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