Selling primary residence in US upon returning to Canada

chewbacca · Post by **chewbacca** » Tue Feb 19, 2008 4:11 pm

I'm a dual Canada/US citizen currently residing in the US with no income tax ties to Canada. I may return to Canada soon.

Should I sell my US primary residence before I return to Canada? Meaning, are there any tax consequences if I sell it before I return vs after I return? Should I sell it in one tax year and return to Canada in the following tax year? Or does none of this matter from a taxation perspective?

Also, note that my capital gain on the house will be below the $250,000 threshold.

Thanks

nelsona · Post by **nelsona** » Tue Feb 19, 2008 4:22 pm

Your home in US will not be taxed in canada, regardless of the profit, so long as you sell it within one year of coming to Canada.

Even if you sell it after that, your tax would only be taxed in canada based on the growth AFTER leaving US, and then only if you have another principal residence at the time.

If you sell it upto 3 years after leaving US, you shoudl not face any US capo gains, unless you rent it out in the meantime.

So, you have some time.