Personal Residence and Capital Gains Tax

Canada and the US differ on Capital Gains on personal residences, but it may be possible that you get hit with Capital Gains taxes on the US side or on a vacation property.  Something you can do to address this Capital Gain would be to increase your basis by any improvements you made on the property.  

​The IRS gives a pretty good description of what can be included in increasing your cost basis for the property, I don't think we will amend the US tax return, this is just to give you an idea of things to think about for improvements.

https://www.irs.gov/publications/p523#en_US_2017_publink100010755

ImprovementsImprovements add to the value of your home, prolong its useful life, or adapt it to new uses. You add the cost of additions and improvements to the basis of your property.
The following chart lists some examples of improvements.

 Examples of Improvements That Increase Basis

Additions
Bedroom
Bathroom
Deck
Garage
Porch
Patio

Lawn & Grounds
Landscaping
Driveway
Walkway
Fence
Retaining wall
Swimming pool

Systems
Heating system
Central air conditioning
Furnace
Duct work
Central humidifier
Central vacuum
Air/water filtration systems
Wiring
Security system
Lawn sprinkler system


Exterior
Storm windows/doors
New roof
New siding
Satellite dish

Insulation
Attic
Walls
Floors
Pipes and duct work

Plumbing
Septic system
Water heater
Soft water system
Filtration system

Interior
Built-in appliances
Kitchen modernization
Flooring
Wall-to-wall carpeting
Fireplace 

Repairs done as part of larger project.
You can include repair-type work if it is done as part of an extensive remodeling or restoration job. For example, replacing broken windowpanes is a repair, but replacing the same window as part of a project of replacing all the windows in your home counts as an improvement.
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Examples of improvements you CAN’T include in your basis.
 You can’t include:

• Any costs of repairs or maintenance that are necessary to keep your home in good condition but don’t add to its value or prolong its life. Examples include painting (interior or exterior), fixing leaks, filling holes or cracks, or replacing broken hardware.
• Any costs of any improvements that are no longer part of your home (for example, wall-to-wall carpeting that you installed but later replaced).
• Any costs of any improvements with a life expectancy, when installed, of less than 1 year