Calculator for Americans living in Canada selling their home

16 November 22
Calculators

Considering the difference in rules between Canada and the US with respect to how principal residences are taxed it can be challenging for Americans in Canada to truly assess the tax implications of their Canadian home sale. This is why I created this calculator. In basic terms it calculates an estimated amount of US tax on a Canadian principal home sale. Please note the following:

  • This calculator is for informational purposes only and should not be used for tax planning or tax filing purposes. It uses simple assumptions to allow you to get a picture of your potential US tax liability on principal residence sales for US taxpayers living in Canada
  • It assumes that the taxpayers is a US Citizen or green card holder living in Canada
  • It assumes that the property was the taxpayers principal residence for the whole period of ownership
  • The calculator will convert proceeds at an approximate exchange rate for today.
  • It will approximate the exchange rate on the date of original purchase
  • For married filing joint taxpayers the exemption will be $500,000 and for single individuals the exemption amount will be $250,000
  • The tax on the net gain will be estimated using the highest capital gains rate plus Net Investment Income Tax (NIIT) for a total of 23.8%
  • This calculator is a work in progress, so if you have questions and/or feedback please leave it in the comments below

[jms-house-sell-calculator]

Disclaimer: This calculator is for informational purposes only and should not be used for tax planning or tax filing purposes. If you need help with cross-border tax or investment planning please reach out to Phil at phil@philhogan.com

Phil Hogan, CPA, CA, CPA (Colorado)

Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 250-661-9417. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/

This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.

Leave a comment

Your email address will not be published. Required fields are marked *