Bringing in property sale proceeds from abroad
- Thread starter seekr
- Start date
First, have you declared your overseas asset to CRA using form T1135? If not you need to rectify this as soon as possible.
Second, sale of any real property must be reported. It does not matter if there is a gain or not.
Third, the initial cost of your property should be computed using the CAD exchange rate at the time you became a PR.
Agreed for 2 and 3.
About 1, why should it be declared if it is for personal use?
I was checking here: (question 6)
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/questions-answers-about-form-t1135.html
About 1, why should it be declared if it is for personal use?
I was checking here: (question 6)
https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/questions-answers-about-form-t1135.html
If you are not able to claim this property as your principle resident, then claiming this as personal use property has no benefit. If you incur a loss on the sale, you might not be able to claim a capital loss.
Indeed, I am just interested here in not incurring in a penalty (so, declaring correctly).
I do not think this can be principal property cause I didn't live there (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/principal-residence-other-real-estate/what-a-principal-residence/does-a-property-qualify.html)
So, this means that, as personal property, there is no need to declare, correct?
Obviously, if/when I sell, I will need to report it.
Hi
I have a question on provident funds (retirement funds) which I intend to continue keep in my home country as the dividend is high. My accountant told me I need to bring all of it to Canada within 2 years after landing (I just re-landed in Aug 2018), if not I will be taxed. I read somewhere in the forum before should I decide to bring in the money later at any time, I will only need to be taxed if there's an exchange rate appreciation in the home currency. Eg, R3.00 to 1 CAD at time I landed and became tax resident and R2.50 to 1 CAD, the difference of R0.50 will be taxed, since my home currency has appreciated. Would appreciate any advice. Thanks!
I have a question on provident funds (retirement funds) which I intend to continue keep in my home country as the dividend is high. My accountant told me I need to bring all of it to Canada within 2 years after landing (I just re-landed in Aug 2018), if not I will be taxed. I read somewhere in the forum before should I decide to bring in the money later at any time, I will only need to be taxed if there's an exchange rate appreciation in the home currency. Eg, R3.00 to 1 CAD at time I landed and became tax resident and R2.50 to 1 CAD, the difference of R0.50 will be taxed, since my home currency has appreciated. Would appreciate any advice. Thanks!
It is complicated when you are dealing with pension funds..
You need to check if there is a tax treaty between Canada and your home country. If a tax treaty exists, the pension income tax may be exempted in Canada. If the pension income is not exempt, it is likely that you will have to pay tax in both countries. If this is the case, it may be better to bring the fund to Canada.
I would suggest you consult with an accountant specialize in expat taxation.
I have this question on bringing in money to Canada after property sold abroad. If some of the experts here can answer that, it is highly appreciated.
Scenario:
- I arrived to Canada from Colombia in 1999. I became a Canadian citizen.
- I inherited a property back home in 2011. This property was worth $78,000 CND.
- I have been filing my taxes back home over this property and rental income.
In 2014 the property value doubled to $191,000 CND. Through the years and exchange rate fluctuations it is now worth $173,000 CND.
- Recently I sold the property for $151,000 CND and half that was paid in Canada by a gentleman living in Canada. I intend to bring the rest of the money too. I will be paying capital gain taxes in my home country, when I file my taxes next year.
- I have a couple of questions about bringing in money to Canada after I sold the property abroad. If some of the experts here can answer this, it is highly appreciated.
Questions:
1. What are my tax obligations in Canada?
2. On my tax filings in the past years, I have said no to the question that asked "if I have property abroad value at more than $100000". I did that on the basis that the house was not worth more than $100,000 CND for the first three years of my tenancy. Would I have problems now that I sold and am bringing in money?
Scenario:
- I arrived to Canada from Colombia in 1999. I became a Canadian citizen.
- I inherited a property back home in 2011. This property was worth $78,000 CND.
- I have been filing my taxes back home over this property and rental income.
In 2014 the property value doubled to $191,000 CND. Through the years and exchange rate fluctuations it is now worth $173,000 CND.
- Recently I sold the property for $151,000 CND and half that was paid in Canada by a gentleman living in Canada. I intend to bring the rest of the money too. I will be paying capital gain taxes in my home country, when I file my taxes next year.
- I have a couple of questions about bringing in money to Canada after I sold the property abroad. If some of the experts here can answer this, it is highly appreciated.
Questions:
1. What are my tax obligations in Canada?
2. On my tax filings in the past years, I have said no to the question that asked "if I have property abroad value at more than $100000". I did that on the basis that the house was not worth more than $100,000 CND for the first three years of my tenancy. Would I have problems now that I sold and am bringing in money?
Right, it all depends on whether there is a treaty between Canada and your country. For example with US/Canada treaty, the Canadian resident is able to keep his/her US IRA/401K accounts intact (with mutual funds, but not stocks/ETFs) and let them grow with deferred taxation.
I am not sure on the answers of your questions and what is your sold property cost basis ( arrived to Canada in 1999 and inherited a property in 2011), but the red flag would be "I have been filing my taxes back home over this property and rental income." Did you disclose your foreign rental income on Canadian taxes? Watch this as well.
Also, according to https://turbotax.intuit.ca/tips/declaring-foreign-property-on-your-tax-return-6217
If you own foreign property with a cost in excess of $100,000 at any period during the year, you must make an annual disclosure with the Canada Revenue Agency. You see -"with a cost in excess of $100,000 at any period during the year"
Thanks all for all the information shared here.
I just moved to Canada last year May on PR and this is the first TAX I will be filing. My question is this...I have a property of less than 100k CAD back home and from what I have read, I need not declare this on the Tax forms because it's less than 100k. So if I sell this property, (which I am planning to soon) how do I move in the money to Canada without raising red flags?
I just moved to Canada last year May on PR and this is the first TAX I will be filing. My question is this...I have a property of less than 100k CAD back home and from what I have read, I need not declare this on the Tax forms because it's less than 100k. So if I sell this property, (which I am planning to soon) how do I move in the money to Canada without raising red flags?