uknzbc

Hi All

We have had an offer for our house and as things are so very painfully slow here in NZ we are considering it but i am not sure if i will lose out in Tax issues. We know the people so it is safe to do this but they have offered us 50% now and pay the other 50% in 18 months time. If we move now and rent in Canada untill we get it all will we have to pay tax on the additional 50%?

Really appreciate any help here.

Also can you apply for your social security number before you land? i couod not find anything on it in the Wiki.

Thanks again

Silverdragon102

This should explain SIN http://www.servicecanada.gc.ca/eng/sc/sin/

JB0591

Why would you need your SIN before you land? It takes 5 minutes to obtain, just turn up at the relevant office, service ontario in my case. You walk away with the number printed out.

uknzbc

Thanks Silver dragon that is the SIN sorted grateful for your time.

uknzbc

We were just trying to achieve what we could before we land if possible but we know better now thanks

Aviator

Repayment of a debt incurred prior to becoming a tax resident would not be taxable. I would get a lawyer to do up a contract of sale with payment dates, amounts and what happens if they cannot or do not pay. I would not rely on knowing people, being friends, or even family, the money is not safe until it is in your pocket.

What would be taxable is any increase in value of the house or any interest you recieve.

JonboyE

Too true. I would have that one sewn up tighter than a gnat's arse. You are effectively giving these people a mortgage so you need a very clear and explicit mortgage agreement that says $x paid in full on a certain date(s) or the house title reverts back to you.

As Aviator says, any interest you earn after you move to Canada is taxable here, repayment of the mortgage principal is not.