Changing home title in Canada one year after relocation to us

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YavorskiE
Posts: 1
Joined: Thu Dec 13, 2018 4:56 pm

Changing home title in Canada one year after relocation to us

Post by YavorskiE »

I was suggested to relocate with my company from Toronto to Pennsylvania last year.
My company helped me to obtain L-1A visa and I started my employment in US on July 1st, 2018.
My wife has L-2 visa but she can't move to US for at least next few years. However she visited me occasionally.
We own the house in Canada and we are not going to sell it now. But I have an idea to change the title to make wife the only owner to avoid future tax implications in case if we decide to sell the house.
My question, if we still can avoid any taxation both, in Canada and in USA for year 2019 return connected to this title transfer?
nelsona
Posts: 18358
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Changing home title in Canada one year after relocation to us

Post by nelsona »

A little murky, but, if you sell your half of house to her, then "your" profits would not be taxable as long as this was done before one year after you left (because it was your home). It would still be considered a sale by a non-resident with some compliance issues, but no tax would be due. In US it would not be taxable if the transfer was done before 3 years after leaving that home.

If she later sold it, she would benefit from the same rules, starting with the date she left Canada.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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