Is the "gift" or transfer of ownership of property to one of my children in Canada an acceptable form of "disposition", as opposed to selling it to a 3rd party?
The house is not rented or occupied. By transferring ownership to a relative, would I qualify for the exemption which I believe would require me to pay capital gains tax in the U.S. based on the property's evaluation at the date of non-residency rather than the date of my initial purchase? Up until March 2016, the house was my "principal residence for 2 of the past 5 years". The deadline is very soon!
Disposition of property in Canada by U.S. Resident - urgent!
Moderator: Mark T Serbinski CA CPA
You are better off selling the property as this will allow any gains to be tax-free. Otherwise you will run-up against gift tax issues, or denial of the gains exemption.
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