Smacked with a Tax if Canadian house sells but we're not here - HELP!!

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Mar 14th 2009, 11:14 am

#46

old fat biker bloke

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Re: Smacked with a Tax if Canadian house sells but we're not here - HELP!!

Quote:

Originally Posted by g_is_for_canada

Yep Canada has all the taxes of any other country with few of the benefits. Consider it a final token of goodwill from this high taxation loonie left country. Hopefully you've moved to somewhere more sensible about such matters.

Oh we ain't gone yet but just as soon as we can!!! You wanna buy a house near 'The Falls'?? LMAO!!!! Actually its a bargain & once Mr 5%'s contact is up we'll chuck in our '02 Montana for the asking price!!!

Seriously, thanks to all the poster for their time & info' - Much appreciated!!!

Oct 31st 2009, 1:12 am

#47

Posidrive

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Re: Smacked with a Tax if Canadian house sells but we're not here - HELP!!

Quote:

Originally Posted by sans

They dont ask for it as proof that you are resident in Canada.......Its to prove you have Permenant residency status in Canada.....And the TWP is a temporary work permit.......I think your missing the point.

If you sell a house in Canada and you are resident in that house at the time of sale...if you have PR you wont pay the tax.......If you are a tempoary resident eg TWP you will still pay the tax.
So when you complete your house sale they check whether you are a PR or you are on a tempoary permit.

House sale completed yesterday. NO WITHHOLDING TAX.

Lawyer contacted senior manager at CRA who confirmed that you just have to be resident when selling your principal residence not to be stung by the withholding tax. It matters not a jot whether you are a citizen, PR or TWP.

Lawyer was in initially talking about withholding 25% because we were not PR, but after mention of a baseball bat he phoned CRA and got the correct information

Just make sure that you are tax resident on the day that the sale goes through and probably a good idea to be physically resident as well to ensure that the lawyer believes that you are resident.