Bringing in property sale proceeds from abroad

[AussieCanuck2017]

"...Should we try to sell our house before the approval to save on capital gains? "-- approval of PR does not mean anything from taxation point of view. As I understand, the PR becomes a resident of Canada for taxation purposes on the day of landing, assuming that day is a "hard" landing. And you, the Sponsor, will become a resident of Canada ( as far as taxation) on a day of your return to Canada.

"...we do not want to pay capital gains in both countries!" - do not forget that as far as US taxation you can exclude $250,000 of your profit from the sale of your home if you are single and $500,000 of the profit if you’re filing taxes jointly as a married couple. However, you do have to meet specific requirements to claim this exclusion:

• The home must be your primary residence.
• You must have owned the home for at least two years.
• You must have lived in the home for at least two of the past five years.

Are you expecting to have $500,000 or more in capital gains from the sale? Maybe not, so do not worry about US.

Thank you. We are waiting in USA for PR in Canada. This is so helpful. Do you have a resource you recommend for international financial/tax info? I am trying to be as educated as possible before officially moving across the border there are so many laws to adhere to. I want to be smart about how I move my money and assets, I have been in the States 13 years so lots to do!

 

[Alex54321]

Thank you. We are waiting in USA for PR in Canada. This is so helpful. Do you have a resource you recommend for international financial/tax info? I am trying to be as educated as possible before officially moving across the border there are so many laws to adhere to. I want to be smart about how I move my money and assets, I have been in the States 13 years so lots to do!

I am her for 20 years! Try to contact Peter Ingram at -peter@centa.com
At least I am going to use his services when time comes.
Also good reading is here - http://www.kurucz.ca/expatrepat/

 

[rfasihi]

Hi , i got some useful info while went through the thread.. my question...
i landed August 2013

Have residential plot worth less than 100k

Never declare in tax returns because of lesser value

Now planning to sell it for down payment fund arrangements

Selling price will be less than 100k

What will be tax impact in canada?

Who are the authorised surveyor for fair market value evaluation on my landings...?

How capital gain tax ia calculated?

 

[canuck_in_uk]

Hi , i got some useful info while went through the thread.. my question...
i landed August 2013

Have residential plot worth less than 100k

Never declare in tax returns because of lesser value

Now planning to sell it for down payment fund arrangements

Selling price will be less than 100k

What will be tax impact in canada?

Who are the authorised surveyor for fair market value evaluation on my landings...?

How capital gain tax ia calculated?

There was a deemed disposition of the property at fair market value in 2013 when you became a resident in Canada. If you sell the property for more than the 2013 FMV, the difference between the 2 values is a gain. Half of that gain is taxable.

 

[rfasihi]

There was a deemed disposition of the property at fair market value in 2013 when you became a resident in Canada. If you sell the property for more than the 2013 FMV, the difference between the 2 values is a gain. Half of that gain is taxable.

Thanks... but who will determine fair market value? Do CRA has authorised surveyor in Pakistan?

Any idea about %age of tax on 50% of gain

 

[canuck_in_uk]

Thanks... but who will determine fair market value? Do CRA has authorised surveyor in Pakistan?

Any idea about %age of tax on 50% of gain

No, CRA does not have an authorized surveyor in Pakistan. Canada's tax system works on an honesty basis. You will need to provide the fair market value of the property in 2013. If the value you provide seems ridiculous, CRA may choose to investigate further.

The amount of tax owing depends on your income. No one here can tell you that.

 

[rfasihi]

No, CRA does not have an authorized surveyor in Pakistan. Canada's tax system works on an honesty basis. You will need to provide the fair market value of the property in 2013. If the value you provide seems ridiculous, CRA may choose to investigate further.

The amount of tax owing depends on your income. No one here can tell you that.

Thank you, much appreciated

 

[Hyd008]

Hi,

I am a Citizen from 2013 and landed on workpermit in 2007.
I have a property being sold in india for 35lacs. I have never declared this in my tax filing in Canada as the value of property was less than 100k. I am planning to have the funds transferred here to Canada which is about 60K CAD. Question... will I have to pay Capital gains in Canada or declare anything to CRA.

thanks in advance for any advise..

 

[mark113]

Hi,
We immigrated in Canada back to 1995 and starting 2013 we returned to old country in Europe, sending a letter to to CRA that we moved out to Canada for many years to come and establishing the tax residence to Romania.
in 2018 we sold the primary residence here and we got over 750k into our accounts.
Question : this amount will be taxable when moving the money back to Canada ? We think to re-establish our residence there in 2019 or 2020.

Thanks in advance.

 

[Alex54321]

Hi,
We immigrated in Canada back to 1995 and starting 2013 we returned to old country in Europe, sending a letter to to CRA that we moved out to Canada for many years to come and establishing the tax residence to Romania.
in 2018 we sold the primary residence here and we got over 750k into our accounts.
Question : this amount will be taxable when moving the money back to Canada ? We think to re-establish our residence there in 2019 or 2020.

Thanks in advance.

So, now you are not Canadian resident from taxation point of view (I assume you are Canadian citizen) and you sold your property out of Canada and got some money outside of Canada. When you return to Canada in the future - you are going to be a former resident, moving back to Canada to resume residence.
The answer is: No, the money from sold residence while you are not Canadian resident are not taxable when you return back.
Read this link:
https://www.cbsa-asfc.gc.ca/travel-voyage/mrc-drc-eng.html

 

[mark113]

Thank you for your reply.

 

[amabomaa]

Hi,

Aplogies if my question has already been answered but i need to know this:

I got CoPR in October 2018 and I'm planning to land in Feb 2019 with my family. I intend to travel with 40K CAD which i would have to declare when i land.

The proceeds from the sale of my house is 200K CAD; if i am not able to land with this amount and decide to transfer it after landing, will i pay tax on it?
Kindly advise.

 

[Alex54321]

Hi,

Aplogies if my question has already been answered but i need to know this:

I got CoPR in October 2018 and I'm planning to land in Feb 2019 with my family. I intend to travel with 40K CAD which i would have to declare when i land.

The proceeds from the sale of my house is 200K CAD; if i am not able to land with this amount and decide to transfer it after landing, will i pay tax on it?
Kindly advise.

I assume the house sale happens before landing, so these money are not taxable in Canada.
I would read the following link:
http://www.kurucz.ca/expatrepat/
Interesting point is:
"A practical policy for keeping things absolutely clean with the CRA is "Cash into Canada, then you, then your goods". In that order. Note: This is not an absolute "must", but it provides one simple benefit: You never have to explain where the money you are bringing in comes from!"
and
"... so if you decide to leave money outside of Canada, no problem: Just be sure to have clear records of your assets when you return, so you never find yourself having to find proof that the money you bring back to Canada later is not "income" but instead "assets" you had..."

 

[steaky]

Hi,

Aplogies if my question has already been answered but i need to know this:

I got CoPR in October 2018 and I'm planning to land in Feb 2019 with my family. I intend to travel with 40K CAD which i would have to declare when i land.

The proceeds from the sale of my house is 200K CAD; if i am not able to land with this amount and decide to transfer it after landing, will i pay tax on it?
Kindly advise.

Even after landing, if you have not yet establish resident ties with Canada, the sales proceed will not be taxable by Canada.

 

[mirko_81]

So, it is finally time to sell and move money..
Just wanted to recap the steps (and the info in the previous pages):

1) no need to declare any property as long as there is no gain (e.g., not rented).

2) the moment you still tough, you have a gain (or loss). This has to be declared.

3) to compute gain or loss, take the value of the property when selling (in CAD - say 210k) and subtract the venue when you became permanent in Canada - and convert to CAD (say, 200k).

4) the difference (10k in example above) is the