Buy Property Before or After Landing?
Jun 18th 2001, 1:48 am
#1
Guest
Posts: n/a
Hello. I'm a U.S. citizen immigrating to Canada. I would like to buy a condominium in
the Toronto area ahead of my move. Does it make any difference (tax wise or
otherwise) if I buy it BEFORE or AFTER landing? Are there any considerations or
complications you can think of?
Also, very likely I will be selling my current residence, a condominium, in New York,
a few months AFTER I land. I've heard that Canada will consider the basis for tax
purposes as if I had purchased it on the day I landed in Canada. Therefore, capital
gains would be only on the sale price realized above the value on the day of landing.
Is this true? If so, what would Revenue Canada consider "proof" of value of the
property on the day of landing. Would a letter from the real estate agent selling the
property and attesting to the value suffice?
I realize this is not a tax group, but this situation involves immigration, and
I'd appreciate any advice from someone with expertise or similar experience. Thank
you so much.
Steve in NY
the Toronto area ahead of my move. Does it make any difference (tax wise or
otherwise) if I buy it BEFORE or AFTER landing? Are there any considerations or
complications you can think of?
Also, very likely I will be selling my current residence, a condominium, in New York,
a few months AFTER I land. I've heard that Canada will consider the basis for tax
purposes as if I had purchased it on the day I landed in Canada. Therefore, capital
gains would be only on the sale price realized above the value on the day of landing.
Is this true? If so, what would Revenue Canada consider "proof" of value of the
property on the day of landing. Would a letter from the real estate agent selling the
property and attesting to the value suffice?
I realize this is not a tax group, but this situation involves immigration, and
I'd appreciate any advice from someone with expertise or similar experience. Thank
you so much.
Steve in NY
Jun 18th 2001, 5:08 am
#2
Guest
Posts: n/a
So far you have heard properly. You should have your NY property appraised near to
your landing date. When you later sell it one half of the difference in value would
be subject to captial gains tax. There is no immigration advantage to buying prior to
obtaining your visa. If you have a visa then the time for landing is limited and the
only advantage I can see is the convenience of having a place to live ready for you.
Jim Humphries
Steve wrote:
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
your landing date. When you later sell it one half of the difference in value would
be subject to captial gains tax. There is no immigration advantage to buying prior to
obtaining your visa. If you have a visa then the time for landing is limited and the
only advantage I can see is the convenience of having a place to live ready for you.
Jim Humphries
Steve wrote:
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
Jun 18th 2001, 4:26 pm
#3
Guest
Posts: n/a
>
>
>
>
There are no significant negatives to purchasing the property prior to landing in
Canada. Given that there is always the possibility of complication at every stage,
however minimal that may be under these circumstances, it may be safest to purchase
the property once you are landed, and your status is secure.
>
>
>
>
>
>
>
Documentation from the real estate agency, or a formal appraisal of the value should
suffice for this requirement.
________
CAMPBELL, COHEN - attorneys at law tel:514.937.9445 / fax:514.937.2618
[email protected] http://canadavisa.com
Online Community: http://canadavisa.com/community
>
>
>
There are no significant negatives to purchasing the property prior to landing in
Canada. Given that there is always the possibility of complication at every stage,
however minimal that may be under these circumstances, it may be safest to purchase
the property once you are landed, and your status is secure.
>
>
>
>
>
>
>
Documentation from the real estate agency, or a formal appraisal of the value should
suffice for this requirement.
________
CAMPBELL, COHEN - attorneys at law tel:514.937.9445 / fax:514.937.2618
[email protected] http://canadavisa.com
Online Community: http://canadavisa.com/community
Jun 19th 2001, 5:19 pm
#4
Guest
Posts: n/a
yes, i'm sorry i have actually posted this query elsewhere on this site but got no response! reason i'm posting it here is that it is linked to the intitial enquirer in that i too am looking to purchase a condo in downtown toronto, but am having difficulty in obtaining the right mortgage loan, as I am a UK citizen; ie i'm looking for something like 15% to 20% downpayment but at present have only heard of one Bank who will do it, and they require 30% downpayment!!! Thats far too much for me, as 30% for me will be around C$60 000!!! Can anyone help at all, please?
