Tax for house sale

srini88 · Post by **srini88** » Sat Sep 18, 2010 4:13 pm

Hi Nelson

Thanks for your response on taxes on house rentals. We have decided to sell the house instead and had two related questions. Again, I am not a US citizen, but am moving to the US and am a current Canadian PR.
1. What are the tax implications in Canada and US if I sell my home and then move to the US?
2. What are the tax implications if we chose to move to the US before our home can be sold?

Thanks!

nelsona · Post by **nelsona** » Sat Sep 18, 2010 7:23 pm

1, None. Your home is sold tax free for both Cdn and US taxes.
2. Assuming it was never rented out, If sold in the first year after move, no Cdn tax. If sold within 3 years after move, no US tax.

srini88 · Post by **srini88** » Sat Sep 18, 2010 7:28 pm

Thanks nelsona, much appreciated. So essentially if the house is sold in the 2nd yr, we will have to pay Canadian taxes, but no US taxes assuming it isn't rented out?

Thanks

nelsona · Post by **nelsona** » Sun Sep 19, 2010 8:02 pm

You may have to pay Cdn tax a small portion of the overall gain on the house, if sold after 12 months of more abroad.