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Episode #3: You Sold Your Canadian Home Tax-Free… But IRS Calculated Taxable Gain | Section 121 Rule Analytics Table

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About Episode #3: You Sold Your Canadian Home Tax-Free… But IRS Calculated Taxable Gain | Section 121 Rule

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Episode 3 of 5 | Canadian Citizen + U.S. Green Card Holder Series You sold your Canadian home. Canada gave you the Principal Residence Exemption — zero Canadian tax. You thought you were done. But the IRS has a completely different view. In this episode, Nanda Kumar KV (EA | iLead Tax LLC) walks through exactly how the IRS calculates the gain on a foreign home sale — in U.S. dollars, at historical exchange rates — and why you can have ZERO gain in Canada and still owe U.S. tax. WHAT WE COVER IN THIS EPISODE: ✅ Canada's Principal Residence Exemption vs. the IRS view ✅ The U.S. capital gain formula — Sale Price, Basis, Improvements & Selling Costs (all in USD) ✅ The currency conversion problem — how CAD/USD exchange rates create or reduce your U.S. taxable gain ✅ Real example: $0 gain in Canada → $40,000 taxable gain in the USA (and why this happens) ✅ Section 121 exclusion — $250K single / $500K MFJ — and how it applies to foreign homes ✅ The 2-of-5-year ownership and use tests — what they mean for immigrants who moved to the USA ✅ Ajay's complete case study: CAD $900,000 sale, full USD calculation, Section 121 result ✅ Why ownership percentage matters — 1% still means 1% of the gain is yours to report ✅ Why the home sale must still be reported on Form 1040 even if Section 121 covers 100% of the gain MISSED EPISODES? Episode 1: Who This Affects — Green Card Tax Residency & Worldwide Income Episode 2: FBAR, FATCA, Foreign Income & PFIC Rules BOOK YOUR iPLAN CONSULTATION: Get a complete cross-border tax review — FBAR, FATCA, PFIC, foreign home sale, treaty analysis, and a forward-looking plan — all in one session. Schedule here: https://calendly.com/nandakumarkv/ilead_tax_planners CONTACT iLEAD TAX LLC: Website: www.iLeadTax.com Email: [email protected] USA: +1-234-444-5323 India: +91-994-957-9091 SUBSCRIBE for weekly cross-border tax education for Indians and immigrants in the USA. DISCLAIMER: This video is for general educational purposes only. It does not constitute legal or tax advice. Consult a qualified Enrolled Agent, CPA, or tax attorney for your individual situation. #CanadianGreenCard #ForeignHomeSale #Section121 #CrossBorderTax #iLeadTax #USCanadaTax #GreenCardTax #CanadianCitizen #NandaKumarKV #IRSCompliance #CurrencyConversion #TaxPlanning2026

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