Can your U.S. vacation home qualify as your principal residence in Canada?
Buying, selling, or co-owning a home across the U.S.–Canada border can create a web of unexpected tax implications — especially when both countries have their own rules about what qualifies as a principal residence.
In this episode, Gerry Scott sits down with Karlene Mulraine, a cross-border tax specialist and founder of Brij Professional Corporation, to unpack how principal residence exemptions work on both sides of the border and how cross-border couples can plan smartly before making property decisions.
Karlene, who recently earned her Master’s in Taxation from Golden Gate University, shares her insights on key filing requirements, capital gains rules, and the 2026 Canadian inclusion rate change that could impact future property sales.
🔍 Key Topics Covered
🏡 Principal Residence Rules: How Canada and the U.S. define and tax your main home — and why the details differ.
💍 Cross-Border Couples: What happens when a Canadian marries a U.S. citizen and adds them to the property title.
💸 Capital Gains & Exemptions: Understanding the $250K/$500K U.S. exclusion versus Canada’s unlimited principal residence exemption.
📜 FIRPTA Withholding: What Canadians should expect when selling U.S. real estate and how to reclaim excess tax withheld.
🧾 Claiming Foreign Tax Credits: How proper reporting prevents double taxation between the two countries.
🔁 Upcoming Rule Changes: How Canada’s 2026 capital gains inclusion rate increase could affect property sales.
🌴 Market Trends: Why rising insurance rates, unfavorable exchange rates, and shifting lifestyles are leading more Canadians to sell their U.S. vacation homes.
Visit www.brij.tax to learn more about Bridge Professional Corporation and Karlene’s cross-border tax services.
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