daisycutter

We have a house in Vancouver and were looking into pro's and cons of leaving it here whilst we left the country ... does anyone have any info on good websites etc that could layout the tax issues etc for us .... many thanks ...

Cdnshaz

I left Ont in 2000 and returned this year. I didn't sell my house but rented it for the 10yrs I was gone.
Pros
1. Some one in house to take care of it
2. Rent covers taxes/ins/mortgage if you have one
3. Place to return to when you come back (if you do)
CONS:
1. People destroy things
2. Rent often not paid or on time
3. Repairs
4. Pay tax on income (but after claiming expenses there usually is no tax to pay)
I will be honest I rented the house out, and we had some horrific damage and things that had to be either repaired or replaced. We also had some lovely tenants.

My father was looking after it for me and to be honest he just wanted someone to pay rent, he didn't bother to vet or ref them.
If I were to do it again, I personally would either get someone who knew what they were doing or a agency that takes care of those things.

Aviator

If you think you may ever want to sell the house, if you don't sell it while it is your primary residence and while living in Canada, CGT is going to be an issue.

You may also still be deemed a tax resident for Canada and be liable to being taxed on world income in Canada. To some extent depends on what other ties you leave behind, bank accounts etc.

http://www.cra-arc.gc.ca/E/pbg/tf/nr73/nr73-08e.pdf
http://www.cra-arc.gc.ca/tx/nnrsdnts.../lvng-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts.../menu-eng.html

http://www.cra-arc.gc.ca/ebci/cjcm/s...&Submit=Search


If you are leaving temporarily this may not be an issue. It may be wise to speak to an accountant before doing anything.

Cdnshaz

[QUOTE=You may also still be deemed a tax resident for Canada and be liable to being taxed on world income in Canada. To some extent depends on what other ties you leave behind, bank accounts etc.
If you are leaving temporarily this may not be an issue. It may be wise to speak to an accountant before doing anything.[/QUOTE]

This is true: Canadian government wanted me also to file income tax each year and then claim what I made in UK..I REFUSED. They took my health care as I was not considered a resident but wanted me to pay tax on my UK wages...not bloody likely..
What I was advised to do was to put another canadian resident on my deed and then they claim it on their taxes. My dad being the one I trusted for everything was put on my deed. He claimed every year and accountant said it did not effect his taxes in any way.
Again it does depends on how long you are leaving the country...

Aviator

Anyone leaving property behind or planning on coming back should get a determination of residency from CRA or at least consult an accountant. Just saying I don't want to play won't cut it with CRA. They have long memories and charge interest and penalties.

Cdnshaz

I consulted both accountant and lawyer and that is what I was told to do.

I never said tax wasn't paid, re-read...I said my father claimed it

Revenue Canada don't care who pays the taxes on a house as long as one of the legal owners file taxes....and that is what we did.

Acct did my dads taxes every year, all legal...but am in Ont, so maybe BC different.

Aviator

Nothing was directed at you, notice I said 'Anyone'. My suggestion was general for anyone considering retaining property whilst out of the country.

JAJ

Discussed from a UK perspective:
http://britishexpats.com/wiki/House_in_UK-Keep_or_Sell

From a Canadian perspective, you need additionally to think about:

- it becomes harder to claim non-residence for income tax; and
- there may still be a liability to capital gains tax; and
- if you sell as a non-resident, there is a tax witholding.

Of course, if you want to stay Canada tax resident, then the above are not really a problem.