Tax question
 

Hello folks,
If I own a house before immigrating to Canada and I sell it after arriving to Canada, Do I have to pay Canadian taxes for that sale?

Interesting question, I believe not - residents of Canada do not pay taxes on capital gains of their principal residence is basically what the tax laws say. I am pretty sure this would apply to you.




Ray

Re: Tax question
 

No, not if it is your principal residence at time of sale.

Possibly it would be taxable- but as you would expect to get an uplift in value on arriving in Canada it becomes less of an issue.

It would be your principle residence when you left the UK (if thats where you are) but as soon as you arrive you will have a new home. It will depend on whether Canadian tax law has an election whereby you can elect which of a number of properties is your PPR.

Do not take this as tax advice - contact a professional advisor before acting.

Re: Tax question
 

Hi there!
From the Canadian tax side, you would potentially have a tax liability in Canada if you sold it after you moved, since it is no longer your home.

However, the basis, or "purchase price" of your old home will be considered to be it's market value on the day you move to Canada and become a resident. So, if you sell it soon after, the sale price is likely to be very close to the value on the day you moved. In effect, while you will have to report the transaction on your tax return, but there will likely be little or no tax.

Also, depending upon where you are from, there may be some tax planning necessary related to your home country's taxes. Sometimes you need to look at hte tax effect in both countrries to determne the best course of action.

(Of course, there may be something about your tax situation that makes your answer different. Don't take this answer as gospel for your particular situation until you spewak to someone about your particular situation.)

Bryan