iaink

Problem is that as soon as you sell your principal residence, you are no longer resident and the CGT rules bite you. And if you have a second residence to move to and remain a resident, then the home you sell will not be your principal residence, so they hit you for CGT. Its also not clear how long the OP has been in canada...if its less than (2 or 3?) years, then even on a principal residence I was under the impression that they will hit you for the CGT...

I suspect that what you need is a tax professional, not a real estate lawyer. The CRA will likely just tell you you need to pay the CGT...after all, its not in their interest to turn down revenue streams. Then when you call again someone else will tell you something different

JNLS

Iain, thanks for your reply. AFAIK our residency here is based on the fact that we physically live here, not on WHERE we live (i.e. if we owned nothing and were renting, we'd still be considered resident here). We have been here since Mar 2005 and our work permits allow us to reside here until March 31 2010 (at that date, we will have been here just over 5 years, and have owned the house for 4 years 7 months). So if we sell the house and close in mid-March, stay with friends for a week or two and then leave Mar 31, we will have been residents at the time of the house sale, correct?

iaink

Dont ask me. Maybe send JonboyE a PM, he seems to know some of this stuff.

ann m

And have a look at this thread - just in case, for whatever reason, you do not sell the house before leaving Canada - in which case you are a non-resident and other forms are required ....

For your info - and anyone else....

JonboyE

I rarely stray into MBTTUK ...

To recap:

The OP has been in Canada several years and in that time has filed Canadian tax returns (i.e been tax resident in Canada). They bought a house that they now intend to sell sometime in early 2010 but prior to leaving Canada for good. The house has been their principal residence all the time they owned it.

In these circumstances then no worries, there is no tax to pay in Canada on the sale of the house. The 183 day rule is a red herring here. As long as someone lives in their house at some point in the year then they can designate it as their principal residence for that year.

Things get a little trickier if they do not sell before they leave, but worry about that if it happens.

There is a wiki article here:

http://britishexpats.com/wiki/Tax_an...e_Sales-Canada

JNLS

JonBoyE - Thank you!! I really appreciate the good advice. I am feeling much relieved! Cheers!

johnh009

I know when you sell a house in Canada, there is a clause in the deed of sale that requires you to confirm you are a resident of Canada. If you are not, then I believe the lawyer will deduct the capital gains and submit the money to the CRA. However, this money can be claimed back if it is your principle residence. Not the best of situations however.

sans

Yep!!! This is exactly what we were told last yr by our Notory. As long as the house is your principle residence at time of sale you should be ok....

As the morgage was in my name, i had to stay behind, while OH returned to the UK. had i of up sticks and left the house to sell we would of been charged the tax.........