Moving back to Canada, 401, rental property

[1964laker]

Great website. Read through many postings and appreciate the information.
After three years in Florida we are relocating back to Canada. Our long term plan would to retire in the southern US. I am a Canadian Citizen, green card status is pending, my wife is American. Our move will also include leaving the company I work for.

Based on reading from your postings, we should be ok in keeping our 401K in the US. (Mail box address may be required).

We are contemplating renting our home for a period of time instead of selling it. It has appreciated by 50% and should continue to appreciate at a higher rate than other investments.

Can we rent the property and claim mortgage interest and property taxes as costs?
What tax implications would we face from rental income? At best our rent would cover the mortgage P&I, and insurance costs.

We have lived in the house for the past three years. Can we rent it for two or three years, sell it and still qualify for the principal residence exemption? Are we better off, selling the property right now?

Thanks

[nelsona]

You should talk to a US accountant on the advisability of renting out a home in which you have large cap gains to shelter, even temporarily.

But, otherwise, you are entitled to all the tax breaks as for any other investment property.

<i>nelsona non grata... and non pro</i>