Selling House in Canada while TN/TD

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Kroeran
Posts: 14
Joined: Sun Sep 04, 2011 9:54 pm

Selling House in Canada while TN/TD

Post by Kroeran »

Big capital gain in the Canada house protected as primary residence regarding CRA.

If we are TN/TD filing married US, we have 500k or so protected?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

As a former Cdn resident, you get 2 levels of protection: first, your cost basis cannot be less than the FMV when you left Canada, and then you also get the $500K exemption for any gains made after you left Canada. This presumes that you do not rent out your home after leaving Canada.

CRA will exempt gains on your principla residence upto deperture date PLUS one year, again assuming you do not rent out your former home.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Kroeran
Posts: 14
Joined: Sun Sep 04, 2011 9:54 pm

Post by Kroeran »

And what if I rent out for more than a couple of years?

Can I lock in the exempt gain with an appraisal upon exit?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Yes, if fact you probably should get an appraisal before leaeving.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Post Reply