housing tax on Canadian house sale - international non-resident cross border income tax help estate family trust assistance expe
QUESTION:
We are American citizens who have lived in Canada for 9 years. We sold our house here and have purchased a house in the states. Do we have to pay tax on the money we make on our Canadian house sale?
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david ingram
replies:We are American citizens who have lived in Canada for 9 years. We sold our house here and have purchased a house in the states. Do we have to pay tax on the money we make on our Canadian house sale?
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You are getting the only question answered in two days. Been Too busy for others.
There is no tax on the house in Canada because (in genereal) we do not tax any profits on the sale of a principal residence.
However, the sale is subject to Capital Gains tax if the profit was over $500,000 US.
From the looks of your email address, I get the idea that you are in Drumheller or High River, Brooks or another smaller Alberta town which means that although your home will have increased significantly in value, it has not likely hit the $500,000 US profit range.
You should report the profit on US Schedule D, Part II, line 8. If the profit is less than $500,000 ($250,000 per person) deduct it on the next line under Section 121. If the profit is over $500,000, you would deduct $500,000 under section 121 and owe tax to the US IRS on the balance at a maximum of 15%.
Glad to file the retuirns for you if you have a problem.
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If an email is not answered in 24 to 36 hours, it is lost in space. You will have to phone to make an appointment. Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321
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If an email is not answered in 24 to 36 hours, it is lost in space. You will have to phone to make an appointment. Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
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Disclaimer: This question has been answered without detailed
information or consultation and is to be regarded only as general
comment. Nothing in this message is or should be construed as advice
in any particular circumstances. No contract exists between the reader and the
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this disclaimer must be included."
David Ingram gives expert income
tax & immigration help to non-resident Americans & Canadians from
New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
authority.
Phone consultations are $400 for 15 minutes to 50
minutes (professional hour). Please note that GST is added if product remains in
Canada or a phone consultation is in Canada.
This is not intended to be definitive but in
general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only - no self employment or rentals
or capital gains - you did not move into or out of the country in this
year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no
rental
$1,200 would be the minimum with a move in or out
of the country. These are complicated because of the back and forth foreign tax
credits. - The IRS says a foreign tax credit takes 1 hour and 53
minutes.
$1,500 would be the minimum with a rental or two in
the country you do not live in or a rental and a business and foreign tax
credits no move in or out
$1,600 would be for two people with income from two countries
$2,800 would be all of the above and you moved in
and out of the country.
This is just a guideline for US / Canadian
returns
We will still prepare Canadian only (lives in
Canada, no US connection period) with two or three slips and no capital
gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely
$450
And an American only (lives in the US with no
Canadian income or filing period) with about the same things in the same range
with a little bit more if there is a state return.
Moving in or out of the country or part year
earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00
each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00
each.
18 RRSPs would be $900.00 - (maybe amalgamate a
couple)
Capital gains *sales) are likely $50.00 for
the first and $20.00 each after that.
Just a guideline not etched in
stone.
This from "ask an income trusts tax and immigration expert"
from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily
basis with expatriate tax returns with multi jurisdictional cross and
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