Us citizen selling selling their home with CDN spouse

[MIKE2000Z28]

I know there is a 250k usd exemption, the question is do I divide the capital gain by 50 percent since I own half the house? So I make 300k, do you report 150k?

Thanks,

[nelsona]

Yes, you report half the gain, which means you should be tax fee, and may not even have to report the sale.

[ND]

"and may not even have to report the sale', if Cdn house and/or otherwise no 1099-S issued, don't report, if 1099-s issued, report.

[nelsona]

The importance of the phrase "MAY not have to report" seems to have been overlooked.

I wonder what Canadian entity would issue a 1099-S for a sale of a Canadian house by two Canadian residents?

[ND]

nowhere in poster's question does it state that the sold property was located in Canada and not in the US

[nelsona]

Mike, a long-time poster, lives in QC.

[nelsona]

And a US citizen living in US "selling their home", would not care about the citizenship of the spouse, since they would both be US tax residents.

[ND]

But Cdn spouses and current residents selling a US property, whose 2/5 yes residency qualified it as principle residence, would.

[ND]

The importance of the phrase "MAY not have to report" seems to have been overlooked. These were your words, not mine. There's no overlooking when clarifying when and when not an excluded sale would be reported on 1040.

[nelsona]

They live in Canada. They will not be issued a 1099-S.

[nelsona]

He has alreay stated he qualifies for exemption. Done,

[ND]

So, you're saying that in your original reply 'Yes, you report half the gain, which means you should be tax fee, and may not even have to report the sale', you should only have stated 'Yes, you report half the gain, which means you should be tax fee'

[nelsona]

Agreed. You made the distinction between reporting and paying tax in your reply. So did I.

[sk8man]

Yes, you should report 50% of the gain if you own half the house, so for a $300K gain, you’d report $150K. Regarding the $250K exemption, you’re on the right track. For the tricky bits, consult a tax pro.

[Fricenaz]

"For the tricky bits", like “Can I Force My Partner to Sell the House?” really consult a tax pro. They’ll make sure you navigate this with ease, avoiding any house-selling drama.😄