H1-B visa HOlder wants to knoiw about buiying a house

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Hi David,
I am looking at buying a house down here in the USA  and wanted to ask 
you what the implications are for someone on an H-1B visa who owns a 
house in the US and then leaves their position with their work sponsor 
and no longer has work authorization in the US? I'm not expecting this 
to happen any day soon, but was just contemplating some of the issues 
that might arise if I was a homeowner. Would I have to leave the 
country in a specified amount of time after leaving the company unless 
I had a new sponsor? What would happen if I had not sold my house prior 
to having to leave?
thx
txxxxxxxxxxxxx
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david ingram replies
If you are going to stay, buying a house is good.  However, if you buy and are last in first out as an H1-B is supposed to be by law, a house is a risky business.  Again, by law, if you are laid off at 2 in the afternoon, you are supposed to be out of the country by midnight.
No one ever "is" but that is the US law.
(What one does is go to Homeland Security and adjust your status to visitor while you sell your house).
If you are in the house for two years, there is no capital gains tax up to 
$500,000 a couple, $250,000 an individual (I did one for $750,000 where three people owned it).
If you sell it before you leave, there is no US tax consequence up to $250,000 per.
If you have to sell it before two years is up, you can pro-rate the $250,000 by the number of days you owned it divided by the 730 days in two years.  Job transfers, lay-offs, sickness, accidents and divorce are all legitimate reasons for using the pro-rata method.
If you are back in Canada after it sells, it would depend upon it's value when you entered Canada and whether you bought another house in Canada will allow a resident to declare a US house as their personal residence which means that a person with a house in Regina and a Palm Springs condo might be more likely to claim their Palm Springs condo as their tax free house.
Off to do the radio show.  You can get it where you are.
Every Sunday at 9 AM Vancouver Time on 600 AM in Vancouver.
It is also at www.600am.com on the internet.,
Phone numbers are (604) 280-600 and 1(866)778-0600 -m not sure if it works for your state.
David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321 
[email protected]
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