House capital gains, again

[BenTor.]

I'm interested in the latest thoughts on this old question for dual citizens. Very relevant for those of us in Toronto who have wonderfully large capital gains on our primary residences, greatly exceeding the $250- or $500,000 limits for freedom from US tax.

My wife is not a US-person but we can file jointly, if that helps. Otherwise, we both have minuscule incomes as retired people.

Strategies, esp strategies that may require a few years to implement?

Thanks.

Ben

[nelsona]

Not much strategies. You are on the hook for 1/2 the gains if you file separately, all the gains if you file jointly.

So, when you sell, do the taxes both ways and see.

For those starting out, the strategy is to sell your home when it reached about $500K gains and buy another.

Don't know any way around it, other than keeping it until you die, and the estate tax bite might be less.

[BenTor.]

[quote="nelsona"]Not much strategies. You are on the hook for 1/2 the gains if you file separately, all the gains if you file jointly.
...
Don't know any way around it, other than keeping it until you die, and the estate tax bite might be less.[/quote]

Reply appreciated even if the message is not too favourable.

My sole ownership of the house pre-dates the marriage and the house or proceeds of the house are bequeathed to my sort-of adult kids. But I can give all or part of the house to my wife as an interim move apropos the sale.

Aside from the obvious tax benefits of promptly dying, any more ideas?

Ben

[nelsona]

I don't think giving your spouse the house is workable, because, as a non-US citizen, your ability to gift to her is limited.