Another Question about tax.
Mar 15th 2013 | 9:19 pm
#1
Thread Starter
Forum Regular
Joined: Jan 2008
Posts: 234
Another Question about tax.
I have 2 houses i will be renting out when i move to Canada.I was going to sell them to make it less complicated but the income of the rent would help me until i found a job.
I remember i went to hr block to sort my taxes out when i was in Canada last.Could i just go to these again ?.And is it true i would only have to pay tax to the Canadian government ?.Also when i sell would i avoid capital gains ? and just pay tax in Canada ?
I am new to renting out houses as you may guess.
Anyone who could private message me also to give me a bit more advise would be appreciated.Thanks.
I remember i went to hr block to sort my taxes out when i was in Canada last.Could i just go to these again ?.And is it true i would only have to pay tax to the Canadian government ?.Also when i sell would i avoid capital gains ? and just pay tax in Canada ?
I am new to renting out houses as you may guess.
Anyone who could private message me also to give me a bit more advise would be appreciated.Thanks.
Mar 16th 2013 | 2:35 am
#2
Banned
Joined: Oct 2008
Posts: 3,824
From: the GTA
Re: Another Question about tax.
I have 2 houses i will be renting out when i move to Canada.I was going to sell them to make it less complicated but the income of the rent would help me until i found a job.
I remember i went to hr block to sort my taxes out when i was in Canada last.Could i just go to these again ?.And is it true i would only have to pay tax to the Canadian government ?.Also when i sell would i avoid capital gains ? and just pay tax in Canada ?
I am new to renting out houses as you may guess.
Anyone who could private message me also to give me a bit more advise would be appreciated.Thanks.
I remember i went to hr block to sort my taxes out when i was in Canada last.Could i just go to these again ?.And is it true i would only have to pay tax to the Canadian government ?.Also when i sell would i avoid capital gains ? and just pay tax in Canada ?
I am new to renting out houses as you may guess.
Anyone who could private message me also to give me a bit more advise would be appreciated.Thanks.
http://britishexpats.com/forum/showthread.php?t=790684
Mar 16th 2013 | 3:19 am
#3
Binned by Muderators
Joined: Jul 2007
Posts: 11,708
From: White Rock BC
Re: Another Question about tax.
Mar 16th 2013 | 5:36 am
#4
Forum Regular
Joined: Oct 2011
Posts: 225
From: Whitby, ON
Re: Another Question about tax.
You can sign up for the NON resident landlord scheme and receive rents without tax deducted in the UK. Although as you have two properties you will likely earn more than your UK basic personal allowance so I'm not sure if that would be possible.
http://www.hmrc.gov.uk/international/nr-landlords.htm
I wish I could have easily sold the house before moving here. I can see this being an expensive pain in my backside in a few years time.
All is well and good whilst family are renting but that's likely only going to be for the next couple of years.
I note that you can't claim a capital loss if it's not being used for rental income.
What would the situation be for the following
1)House is occupied for all of 2013.
2)Jan 2014 family member moves out and I then put the house on the market.
3)I receive less than the fair value on the day I arrived in Canada
4)House is on the market for a year before selling
Would I be allowed the capital loss? Or would the CRA "deem" that the property wasn't being used to produce income?
Even if there is no capital loss by some miracle on the property I think its safe to say there will be a currency loss with the state of sterling at the moment.
http://www.hmrc.gov.uk/international/nr-landlords.htm
I wish I could have easily sold the house before moving here. I can see this being an expensive pain in my backside in a few years time.
All is well and good whilst family are renting but that's likely only going to be for the next couple of years.
I note that you can't claim a capital loss if it's not being used for rental income.
What would the situation be for the following
1)House is occupied for all of 2013.
2)Jan 2014 family member moves out and I then put the house on the market.
3)I receive less than the fair value on the day I arrived in Canada
4)House is on the market for a year before selling
Would I be allowed the capital loss? Or would the CRA "deem" that the property wasn't being used to produce income?
Even if there is no capital loss by some miracle on the property I think its safe to say there will be a currency loss with the state of sterling at the moment.
Last edited by yzf.shaun; Mar 16th 2013 at 5:48 am.
