Anyone know tax implications of selling principal CDN residence?

[zyggy 9]

WHen one is living abroad, you can only get taxed on Capital Gains for those gains that are on property in the US. You cannot be taxed on Capital Gains for property that is located outside of the US if one is living abroad.

[laura428 0]

WHen one is living abroad, you can only get taxed on Capital Gains for those gains that are on property in the US. You cannot be taxed on Capital Gains for property that is located outside of the US if one is living abroad.

Hi Zyggy...

So, if I'm understanding you correctly, we would not pay capital gains while still living here. Does this mean that, as long as we sell our property before moving back to the States, that we won't pay then, either? Does it matter that we'll have moved back to the States in the same tax year as when we sold our Canadian property?

I'm hoping this is correct. It seems odd that Canada won't tax us on our primary residence, but the States would, even when it's on foreign soil and sold before we move back.

[blahblah 0]

what zyggy says sounds right to me. why would we pay US capital gains on a property located in canada?

anyway, that's what i'm sticking with. we sold our house last night (woohoo!) and i don't plan on giving any of that money to either government!

WHen one is living abroad, you can only get taxed on Capital Gains for those gains that are on property in the US. You cannot be taxed on Capital Gains for property that is located outside of the US if one is living abroad.

Hi Zyggy...

So, if I'm understanding you correctly, we would not pay capital gains while still living here. Does this mean that, as long as we sell our property before moving back to the States, that we won't pay then, either? Does it matter that we'll have moved back to the States in the same tax year as when we sold our Canadian property?

I'm hoping this is correct. It seems odd that Canada won't tax us on our primary residence, but the States would, even when it's on foreign soil and sold before we move back.

[clloyd 0]

WHen one is living abroad, you can only get taxed on Capital Gains for those gains that are on property in the US. You cannot be taxed on Capital Gains for property that is located outside of the US if one is living abroad.

Please reference the above. I could not find any mention of this in either Publication 54 http://www.irs.gov/publications/p54/ch01.html

or Publication 523 http://www.irs.gov/publications/p523/

[laura428 0]

what zyggy says sounds right to me. why would we pay US capital gains on a property located in canada?

anyway, that's what i'm sticking with. we sold our house last night (woohoo!) and i don't plan on giving any of that money to either government!

Yay for you guys! Hey, btw, did you guys use a realtor or sell it yourselves? We're debating... it seems almost silly to use a realtor in this hot market, but we've got a guy who did an appraisal for us back in February we might use if we decide to go that route. Maybe we'll see if he's willing to budge on his commission...

[Jersey Girl 2]

did you guys use a realtor or sell it yourselves?

I used a realtor in Toronto in a hot market last Fall.

For one thing, they find qualified buyers. You don't need the deal to fall through! Also, they network with other agents who already have buyers looking for places like yours. On your own, you'd have to rely on word of mouth and a sign on your lawn ... maybe an expensive ad in a newspaper that gets lost in the clutter. They also arrange, advertise, and run open houses for you.

There are some things here I prefer to use a professional. If you want to move soon after getting the visa, this would be a consideration. Unless you need more waiting in your life!