Sale of US home while resident in Canada

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Sale of US home while resident in Canada

Post by webcite_99 »

Question: US citizen owns a home (has been the primary residence for 2+ straight years) in US and rents a home in Canada. Let's assume that the couple lives enough in the rental home in Canada to be deemed resident in Canada by CRA. If the US home is sold for under $250,000 profit, is there any capital gains implications from the Canada side or is the entire profit non-taxable by both countries?
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Post by nelsona »

You can have a US principal residence while living in Canada, so it would qualify as a tax-free sale. For US as long as the 2-year 'main home' criteria was within the past 5 years, there is no US tax either on the first 250K (500K if MFJ).

This assumes that the US home was never rented out.
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