Will I be subject to double taxation in the US and Canada?
The Tax treaty act of 1980 should eliminate double taxation on proceeds of a real estate sale. You should consult your tax or accounting professional for information on your specific situation. The following information from the IRS.gov web site may help. Don't forget to check out info from the CRA as well.
Income Tax Credits
The treaty contains a credit provision (Article XXIV) for the elimination of double taxation. In general, the United States and Canada both allow a credit against their income tax for the income tax paid to the other country on income from sources in that other country. For detailed discussions of the U.S. income tax treatment of tax paid to foreign countries, see Publication 514, Foreign Tax Credit for Individuals.
See paragraphs (4) and (5) of Article XXIV for certain provisions that affect the computation of the credit allowed by the United States for Canadian income taxes paid by U.S. citizens residing in Canada
Publication 514- Foreign Tax Credit for Individuals -
You can get information from the CRA as well:
Canadian Taxation
You can get information on Canadian taxation from the Canada Revenue Agency. The International Tax Services Office can be contacted on 1-800-267-5177 or on the Internet at www.cra.gc.ca.
The purpose of this web site is to provide general guidance and information only and DOES NOT constitute tax, legal or investment or other professional advice. It is recommended that for accounting, tax, investment, legal or other professional advise that you consult the appropriate qualified accountant, financial advisor, attorney or other profession advisor. Therefore, Adam Tarr PC and the author of this site can not accept any responsibility for loss which may arise from reliance on information contained in this web site.
Please note that each individual's personal circumstances vary, and your professional advisor (tax,financial, legal, etc) will be able to provide specific advice based on your personal circumstances.