I plan to rent out my principle residence in Canada when I become a non-resident of Canada and a resident of the U.S when moving to south of the border. Say I want to sell my Canadian property in a 10 years while I am a US resident. Will the Treaty provide a bump-up in the cost basis of the property as of the date when I become a non-resident of Canada and a resident of the U.S?
My original purchase price is $400K;
FMV is $500K when I become US resident, emigrate from Canada;
FMV is $800K when I sell in 10 years.
Will US capital gain be based on 800K-500K=300K or 800K-400K=400K? Thanks!
Will Treaty provide a bump-up in the cost basis for property
Moderator: Mark T Serbinski CA CPA
Re: Will Treaty provide a bump-up in the cost basis for property
Yes, the treaty provides for this. Article XIII.6
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing