US citizens in Canada may face house tax bills
US citizens living in Canada may find they are hit with hefty tax bills when they sell their home. Many either aren’t aware of rules concerning non-residents selling their property, or will find they have become liable due to rising house prices here. The IRS rules mean that Americans living in Canada (or anywhere outside the US) have to pay capital gains tax on profit above US $250,000 when the home is sold. This differs from the situation for Canadians selling their home where no capital gains tax is normally payable on the sale of a primary residence. Long-term residents in Canada could find that their homes have increased to such a degree that they are now liable for the tax due to price hikes and would be advised to seek help from a financial planner.