Deemed disposition of primary residence - moving from CAN to US

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cwoo92
Posts: 2
Joined: Mon May 09, 2022 10:03 pm

Deemed disposition of primary residence - moving from CAN to US

Post by cwoo92 »

Hello,

I am moving from Canada to US for work. I'd like to better understand the requirements for deemed disposition of my primary residence in Canada:

1) Do I need a professional appraisal done or is a free estimate from my realtor sufficient?
2) If a realtor valuation is sufficient, are there certain requirements for things that need to be included in the report for it to be acceptable by CRA?
3) how long before and after my departure date can the valuation be done to be still effective / acceptable? I understand ideally as closer to the departure date as possible but would like to understand the max time range here.
4) I read that if I sell it after 3 years post moving to US, the capital gain would also become taxable in US. Is that correct? Any source of reference you can point me to?

Thank you for your help!
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Deemed disposition of primary residence - moving from CAN to US

Post by nelsona »

First off, there is no deemed disposition of your Primary residence (or any other Cdn real estate)
1. You will however want to have an evaluation done, to establish future US and Cdn taxation.
2. The better your evaluation, the more confidence CRA and IRS will have. Yoru broker can assist you in that.
3. It should be contemporary to your move.
4. That is correct. If you have not lived in a home for 2 of the past 5 years, the gain becomes taxable (google cap gains on IRS.gov). But the treaty protects the value when you moved to US from taxation. If you sell within a year, you will avoid any Cdn taxation, other that that arising from rental.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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