property under construction

[kabana]

Guys! I am new to the forum. I landed in Ontario 6 months ago. I have a property under construction (house) in my home country. Its current value is about 200000 (two hundred thousantds CAD). However, I still need as much mony to complete it, meaning that I am still in the middle. I am not planning to sell it and may not be able to complete it right now (because so far I have no job in Canada). Indeed, I am still repaying a lone (about 50,000 CAD) I incured for its sake. Do I need to report this property on my first tax return file (to be filled early in 2011).

 

[steaky]

no, you don't receive income from it.

 

[PMM]

Hi

no, you don't receive income from it.

Actually the OP does have to report it. Page 2 of the tax form for property worth $100K and then you have to complete a T1135 form.

 

[toby]

Hi

Actually the OP does have to report it. Page 2 of the tax form for property worth $100K and then you have to complete a T1135 form.

And keep good records of further costs to finish construction. All these costs will be part of the Adjusted Cost Base (ACB) of the property, and if you should sell it at a profit in future, only the sale price minus all costs will be taxable as a capital gain in your Canadian tax return.

 

[kabana]

Thanks guys. I appreciate your advice.

 

[apple3981]

No you don't as far as I know...