Selling US property and moving back to Canada
Moderator: Mark T Serbinski CA CPA
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harjindermall
- Posts: 27
- Joined: Wed Nov 17, 2010 1:28 pm
- Location: Rolling Meadows
Selling US property and moving back to Canada
I am a Canadian citizen, living and working in the US since 2006. I just sold my house that I have lived in for 3 years and I am moving back to Canada on Wednesday, Sept. 11th. Closing on my house is scheduled for Monday, Sept. 16th. I am expecting to receive proceeds from the sale, but will I be taxed on this in Canada, since I will be Canadian resident by this time? And would I have to pay US taxes since by the time I get the proceeds, I will be a non-resident of the US? I am trying to figure out if I need to delay my move until next week. Thanks for your help!!
As long as your gain was less than $250K ($500K if you file MFJ), then there will be no US tax. Period.
For Canad-- assuming you haven't already bought a Cdn house -- you simply elect that that house was your primary residence from the date you returned to Canada, until you sold it, so, again, no tax. Even if you din't elect to call this your primary residence for those few days, the gain that would be attributed to those days would be minimal, and certainly less than any selling costs that you incur, so, again, no tax would be due.
For Canad-- assuming you haven't already bought a Cdn house -- you simply elect that that house was your primary residence from the date you returned to Canada, until you sold it, so, again, no tax. Even if you din't elect to call this your primary residence for those few days, the gain that would be attributed to those days would be minimal, and certainly less than any selling costs that you incur, so, again, no tax would be due.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best