+1(514) 937-9445 or Toll-free (Canada & US) +1 (888) 947-9445

bibi.can

Newbie
Jan 31, 2013
2
0
I am in need of some advice.
I am a permanent resident of Canada. When I moved here, 4 years ago, I owned one third of a property in Brazil as a result of an inheritance. I have owned this property since I was a child, along with my mother and sister.
Last year my mother sold it (with my consent and using a power of attorney I left for her) and with her share of the money she bought a new property for herself, with her name only in the title. My money share went straight to her bank account as I agreed to give it to her, so this money after the sale was never actually "mine" per se. It never touched a Canadian bank account.
I guess my question is, is it considered capital gain here? Do I have to file this money as income in Canada? Even though it was given to my mother? Or should I not even mention it in my taxes here?
We know in Brazil this money will not be taxed and I am exempt from filing taxes there.

Any help will be greatly appreciated.
Thank you!
 
Was this property being your residence before you came to Canada? If so, there should be no capital gain tax.
 
Yes it was. I used to live there before moving here. I never declared that property upon landing in canada or in my canadian income tax. When I purchased a home in Canada though, my husband and I only qualified for half the first time homebuyers benefits as we were told inheriting a property anywhere in the world makes you not a first time home buyer. But anyways...

So I don't have to worry about declaring capital gains on it? Could this money be considered ordinary income as oposed to capital gains?