@moose17 Sorry, I don't know and just saw this! But did you ever get an answer regarding whether we'd have to pay capital gains tax on our Canadian tax returns if we sell our primary residence in the US after moving to Canada? And have you closed on your house yet? (sorry if you answered this in a later post, but I am just having the chance to start catching up on posts here!) I am also planning to sell my condo that has been my primary home for almost 8 years now. For my personal situation, I feel it would be best to close either right before I leave or some time after, but if I am going to owe Canadian taxes if I close after moving, then I might have to rush to sell soon!
However, it seems that under Canadian tax rules, gain from selling your principal residence is not taxed, so I think we have no need to rush to sell our primary homes. It appears we can even rent it out for up to 4 more years and still qualify:
http://www.taxplanningguide.ca/tax-planning-guide/section-2-individuals/principal-residence-rules/
Principal residence rules
Your “principal residence” is generally any residential property owned and occupied by you or your spouse or common-law partner, your former spouse or common- law partner or your child at any time in the year. It can be a house, condominium, cottage, mobile home, trailer or even a live-aboard boat, and it need not be located in Canada. Any gain on the sale of a principal residence is tax-free. However, if you sell your residence, you should be aware that some tax rules apply.
Designating a principal residence
A home can be designated as your principal residence for each year in which you, your spouse or common-law partner and/or your children were residents in Canada and ordinarily lived in it for some time during the particular year. You’re only allowed to designate one home as your principal residence for a particular year.
Homes for rent
If you move out and rent your home, you can continue to treat the house as your principal residence for four additional years, or possibly more if you move as a consequence of a change of your place of employment with your employer. There are also rules that apply if you own property to earn rental income and subsequently convert the property to personal use. Basically, at the time of the change in use, you’re deemed to have disposed of the property at its FMV. If this value exceeds your original cost, you will have to report a capital gain. However, you can make a special election to defer recognizing this gain until you ultimately sell the home. This election is not available if you have claimed depreciation on the property for any year after 1984.