when you are a citizen and you have property otside the country

[hoping_canadian]

hi guys just a question, if you are becoming citizen and you have a property outside Canada. (property owned before even entering to Canada) what will happen to the property, is this taxable by Canadian government? For example a farm, a house and lot etc.

 

[Flyeur75]

Obtaining Canadian citizenship does not change any tax filing/reporting obligations that you already have with respect to your foreign property as a permanent resident of Canada.

Note that there are potentially significant penalties associated with not disclosing ownership of foreign property on your Canadian tax return, and non-disclosure of associated income (if any) you may have been receiving.

 

[hoping_canadian]

Obtaining Canadian citizenship does not change any tax filing/reporting obligations that you already have with respect to your foreign property as a permanent resident of Canada.

Note that there are potentially significant penalties associated with not disclosing ownership of foreign property on your Canadian tax return, and non-disclosure of associated income (if any) you may have been receiving.

before we applied for PR we mentioned in the applications the properties i had, and even on the application of citizenship, there are some questions about the property i owned and I never lie about it. I clearly write all my assets. Even the day of the interview they asked me about it and I told them the same information,

one of my friend tells me that once I became canadian I need to pay taxes for the property i owned. I dont believed in him coz he doesn't have proof.

 

[BLT]

Being a PR or being a citizen is basically the same when it comes to things about tax, owning overseas assets, etc.

 

[hoping_canadian]

Being a PR or being a citizen is basically the same when it comes to things about tax, owning overseas assets, etc.

nice thanks

 

[Flyeur75]

Your obligations as a taxpayer in Canada have nothing to do with your legal status (work permit vs. PR vs. Canadian citizen) in Canada. Rather, for Canadian tax purposes your obligations are primarily determined by your residency (i.e., where you reside and how many days per year are you present in Canada).

If you reside in Canada and file Canadian income tax returns, you have always had an obligation to disclose your foreign property. Becoming a Canadian citizen will not have any effect on your obligations as a Canadian taxpayer.

 

[screech339]

Not that it applies to me, I thought you have to report foreign assets to CRA only when total foreign asset exceed 100,000 CAD. Be that be property value, retirement funds, etc etc.

Screech339

 

[hoping_canadian]

Your obligations as a taxpayer in Canada have nothing to do with your legal status (work permit vs. PR vs. Canadian citizen) in Canada. Rather, for Canadian tax purposes your obligations are primarily determined by your residency (i.e., where you reside and how many days per year are you present in Canada).

If you reside in Canada and file Canadian income tax returns, you have always had an obligation to disclose your foreign property. Becoming a Canadian citizen will not have any effect on your obligations as a Canadian taxpayer.

ok nice to know, But my ITR file by my accountant and he mentioned that my properties are not in the third world county so the government doesn't care about that ;o)

 

[hoping_canadian]

Not that it applies to me, I thought you have to report foreign assets only when total foreign asset exceed 100,000. Be that be property value, retirement funds, etc etc.

Screech339

its really confusing huh, im always transparent when answering questions to Canadian Immigrations. I dont lie and I dont keep a secret.

 

[screech339]

its really confusing huh, im always transparent when answering questions to Canadian Immigrations. I dont lie and I dont keep a secret.

I can understand it if you are transferring 10,000 in value into Canada and must report it. But you don't have to report any property assets unless you sold the property and it reaches 10 grand to move the money into Canada. And that you report foreign assets to CRA income tax if value reaches 100,000.

Screech339

 

[hoping_canadian]

I can understand it if you are transferring 10,000 in value into Canada and must report it. But you don't have to report any property assets unless you sold the property and it reaches 10 grand to move the money into Canada. And that you report foreign assets to CRA income tax if value reaches 100,000.

Screech339

Yeah maybe you are right. My property wont cost 100,000 ha ha ha

 

[Flyeur75]

Screech339 is correct, you are only required to claim foreign properties owned on your Canadian income tax return if the value exceeds CAD$100,000.

The location of the property is irrelevant. It could be in Guatemala or the United States, but if the value exceeds CAD$100,000 it must be reported on form T1135 no matter where it is located.

 

[screech339]

Screech339 is correct, you are only required to claim foreign properties owned on your Canadian income tax return if the value exceeds CAD$100,000.

The location of the property is irrelevant. It could be in Guatemala or the United States, but if the value exceeds CAD$100,000 it must be reported on form T1135 no matter where it is located.

Not just foreign property, any foreign assets. It can also be your 401K retirement fund in US or you have 100000 CAD cash sitting in a bank account in Switzerland or Timbuktu. Must be reported to CRA.

 

[alphazip]

Some of the information you have been given is incorrect. As stated on Form T-1135, you don't have to report a house in a foreign country, no matter what the value, unless you rent it out (or it somehow produces income). For example, a $500,000 vacation home in Florida, used only by you, does not have to be reported. However, if/when you sell it, you may owe capital gains tax. If you have money or investments outside of Canada that amount to $100,000 or over, you do have to report that on Form T-1135.

 

[screech339]

Some of the information you have been given is incorrect. As stated on Form T-1135, you don't have to report a house in a foreign country, no matter what the value, unless you rent it out (or it somehow produces income). For example, a $500,000 vacation home in Florida, used only by you, does not have to be reported. However, if/when you sell it, you may owe capital gains tax. If you have money or investments outside of Canada that amount to $100,000 or over, you do have to report that on Form T-1135.

That would apply if your vacation home in FL is your PRIMARY residence. So if your Florida home is your primary residence, you do not file income tax to Canada. If your primary residence is in Canada, your "vacation" home in Florida is NOT your PRIMARY residence, thus you have to report it.