Capital gain tax on residential property not for investment purpose

[Siby Arasu]

I have sold my house at homeland which is closed since I moved to Canada on 2011. This property is not capital property for investment purposes or to earn income. I have sold it 10% less than the price I bought it in 2008 because of current real estate market down in the city. The price of this property is more than 150 K CAD. I want to transfer this money to Canada, is it taxable? I have sold it with loss of 10% from the original price I bought it what will be the tax in this case?

Note: I didn't report this property before coz I didn't know that we need to report it and now I have already sold it.

 

[steaky]

Yes it is taxable because you can only have one primary residence at a time. From 2011, your primary residence is in Canada.

 

[ExploreWinnipeg]

Hi,

Do we need to declare our real property upon landing to Canada? What is the advantages and disadvantages of not declaring real property.

Thanks,

Explorewinnipeg

 

[steaky]

Hi,

Do we need to declare our real property upon landing to Canada? What is the advantages and disadvantages of not declaring real property.

Thanks,

Explorewinnipeg

No, you do not need to declare real property at landing in Canada.

 

[Halo]

You have to declare the property, but if its value when you sold it is less than when you arrived in Canada, you will have a capital loss. Also, if the country in which you sold the property has taxes, you will pay tax there first, if Canada has a tax treaty with that country, and you will receive a tax credit for the foreign taxes paid.