Housing Confusion

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Posts: 13
Joined: Mon Mar 13, 2006 8:41 pm

Housing Confusion

Post by bigcityblue » Mon Mar 13, 2006 9:00 pm

Hi There,

I am in a somewhat complicated situation. My wife is American. I am Canadian. We live in the US right now. She owns a rental property in the US. We want to sell it and buy a similar rental property, but in Canada, and use the 1030 thing to offset the capital gains.

My question is: What happens tax-wise when we move back to Canada (which we plan to do in a couple of years)? Do you immediately have to pay our capital gains when we move back?

Any help would be greatly appreciated. Thank you.

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Post by nelsona » Tue Mar 14, 2006 12:40 pm

First off you CANNOT use the like-kind exchange rules between a US property and a Canadian one (or any other foreign country). You could do a like-kind excdange within Canada (but there would be no reason to do this , because canada does not recognize this, so tax would be owing).

So the sale of the US property WILL trigger cap gains.

To answer your other question, the cap gains on your Cdn property would not be due upon arrival in canada. It would be due at sale.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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