Sell House in USA

1

I am planning to move to Canada permanently. I recently got approved PR. Below are my questions.

  1. For tax purposes when do you become a resident in Canada.
  2. If I sell my house in USA before moving to Canada, do I still pay taxes for the capital gains from the house sale in Canada.
  3. If I sell my house in USA after moving to Canada, how much tax and capital gain tax I need to pay.
2
  1. Canada has a capital gains exclusion on a primary residence, so you have no Canadian capital gains risk.
  2. If you sell in USA before moving to Canada there’s no Canadian tax impact at all.

To avoid bureaucratic complications that can arise if you sell while straddling the two countries, you would be wise to execute the sale before you take up Canadian residence, that will remove any Canadian implications. If you sell after moving, there are most likely no Canadian capital gains tax implications but the associated paper work that would be generated if you sell after taking up Canadian residency can be highly annoying and will require a CPA’s assistance.

1 Like
3

  1. They day you move for long term in is when you are tax resident.

  2. No tax for first year if you sell in USA and buy in Canada again. There is a special line in tax code for this case.

4

Hi, can you please provide a link for point 2?