Canadian H1B holders want to sell their US house. -

My question is: Applicable to both US and Canada
QUESTION: I am an U.S. attorney who is asking this question on behalf of my
Canadian relatives.
They are in the U.S. currently working with an H-1 visa. They are Canadian
citizens however. They want to know what the tax implications are if they
sell their home (personal residence) in the U.S. - do they have to pay
capital gains tax? what if the equity on the home is less than $250,000.00?
Are they afforded the same tax shelters as American citizens or green card
holders if they held the property for over three years?
Thanks you for your anticipated response.
---------------------------------------------------------------------------
david ingram replies:
Assuming  that they have lived in the house for 24 months, they are entitled
to up to $250,000 US tax free each. If they are selling BEFORE 24 months for
a good reason, then they can pro-rate the 250,000 by the number of months
that they have actually been in the house and claim that amount.  In other
words, if they were in the house for 12 months and they lost their job(s)
and had to sell to return to Canada, they would be entitled to 12/24 x's
$250,000 or $125,000 of tax free capital gains each.
Hope this helps - and remember
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