Tax issues

Old Sep 25th 2014, 3:14 pm
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Default Tax issues

Anybody any experience of leaving Canada with a home still to sell? My house has been on market but we have no interest, my husband starts new job Mid Oct in UK, lawyer just advised me on needing a 116 tax certificate. This seems a minefield. I was wondering as joint owners if I stay and he goes does this change things? Anyone with any experience in this I would really appreciate any help. I have read horror stories of people having 25% held back and not being able to close as not enough equity and I am afraid if we get asking price after paying the realtor 5% with sales tax on that, lawyers, getting out of my mortgage fee etc we would struggle to have that left. What seemed like a stress free move this morning is now a nightmare.
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Old Sep 25th 2014, 5:43 pm
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Default Re: Tax issues

A friend sold a house in Canada when he was a long time non resident. He did indeed have a percentage of the proceeds retained by CRA. Cannot remember what percentage but it was not insignficant, and it was a while before he got refunded. If you are a non-resident you pay capital gains tax on the amount your house has increased in value during your time as a non- resident. Even if the house has not increased in value, I believe CRA does a hold back while all the paperwork and valuation goes through.

From what I have read, when you lose residency, the tax retrun you file for that year will be a final tax return and you will be deemed to have disposed of your property.
Have a look at this link
Leaving Canada (emigrants)

My reading of the page is that if your husband leaves, and you stay, neither of you will have lost residency. That will happen when you go.

I am in a similar situation, though our hose is sold. My partner leaves on Sunday, the house (which is in both our names), closes on Oct 15th and I leave on the 19th. We bought signed off all the paperwork at our lawyer so that should be done, but in case there is an issue my partner has given me power of attorney over the house.

Talk to your lawyer, get a power of attorney over the house and you can then stay and close the deal, and then go over and join him.

I hope all the above is correct but I am not an expert in the area.

Also phone CRA, if you get the right person, they really can be incredibly helpful.
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Old Sep 25th 2014, 7:42 pm
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Default Re: Tax issues

Many thanks for the reply, yes talking to CRA and reading their pages echoed what you say. My husband is contacting his accountant to see what restrictions on my leaving Canada even on vacation whilst he is working in UK. Seems only thing to do is ramp up pressure on a lack lustre real estate guy and try to get house sold , just glad my lawyer mentioned it as we had no idea at all and parting ith more money to CRA is not a nice thought.
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