I have helped hundreds of people successfully navigate from the US to Canada. If you're thinking of moving or retiring to Canada contact me today to chat about your plans.
I can be reached via email at phil@philhogan.com, by phone at 250-661-9417 or through my contact page here.
I look forward to speaking to you soon.
Phil Hogan, CPA, CA, CPA (CO)
Cross-Border Tax and Investment Specialist
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
Note: This calculator is for information purposes only and should not be used
to prepare your tax return or for financial planning manners.
Please Input The Following
Estimated Tax On House Sale
Net US gain on sale (after exemption)
$
US tax on Canadian home sale
$
Estimated US tax in Canadian dollars
$
CROSS-BORDER PRINCIPAL RESIDENCE TAX CALCULATOR
CAD
Rate
USD
Net Proceeds
$
$
Original Cost Basis
$
$
Net gain/loss
$
$
Canadian exclusion
$
US Exclusion
$500,000
Net gain for Canadian
$
Net gain for US
$
Canadian tax
$0
US tax
Highest capital gains rate
20%
NIIT
3.80%
Total tax rate
%
US tax at 24%
$
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
Purchase and improvements 700,000
Worth $1M
Purchased in 2010
Filing MFJ in US
Says gain is over $6M