capital gains - American sells Canadian House for a profit after 20 years

I am an American, my wife is a Canadian. We lived in
> Canada for 20 years, and have had your company catch
> us up on U.S. tax returns. Recently we sold our house
> in Canada and moved to the U.S. How does the capital
> gains on our house work? We did make a profit on it.
>
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david ingram replies;

The house is tax free in Canada.

Up to $250,000 US profit is tax free for your share of the house sale.

Therefore if you sold the house for less than $500,000 US profit, there will be no tax in either country. If the house sold for a $700.000 US profit, your wiffe's share would be tax free but you would owe tax on $100,000 profit or $15,000 US.

We do have to do the calculation and put the profit on schedule D and then exempt it.

Hope this helps.