is probably the single most important point to consider when deciding where to invest your hard-earned
the US, you can deduct the interest – up to $1
million in mortgage costs
– on your primary residence. And, you can sell your primary home and make tax-free profits. If
you’re married, you can claim a capital gain of $500,000 after living in a home for two years. For
singles, the capital gains exemption cap is $250,000.
Canada, you pay no capital gains when selling your principal residence. This is a completely tax free
look at a real-life example over a 30-year period. In 1987, the average cost to buy a home in Toronto
was about $200,000. Today, that same home would sell for $750,000. In other words, if a couple had
invested in a home when in their mid-twenties and sold it when they retired 30 years later, they’d
have a tax-free profit of $550,000 to fund their retirement years.