Liquidating rentals in the USA

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

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MCH
Posts: 40
Joined: Wed Mar 23, 2005 2:15 am

Liquidating rentals in the USA

Post by MCH »

Hello,
We are dual citizens and planning on returning to Canada mid 2018 and become CAN Resident. My wife and I own rentals in FL and wondering what the tax implication if we sell before leaving the US vs. after leaving the US and becoming CAN resident.
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Once you are Cdn residents, all your assets are sold/bought for Cdn tax purposes, so you would be on the hook for Cdn tax only on whatever gain you made after moving (minus expenses). Canada would then give you credit for any US tax you paid on that small, if any amount.

So you would want a good appraisal on any property you still held when you moved.

For US, you would have normal taxes to pay regardless of when you sold.
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
MCH
Posts: 40
Joined: Wed Mar 23, 2005 2:15 am

Post by MCH »

Much appreciated
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