Hi everyone,
Just a few questions about selling a foreign personal use property.
Context:
It is a vacation house.
Never been rented or used for income.
We did not buy the house but built the house.
We do not know the value of the house when we moved to Canada.
We did not declare it as it is a personal use property
We will need to pay 5% of the selling price as tax to the country of origin (Not Canada)
Question:
1. Do we need to pay tax on capital gains?
2. If yes to 1. Does the 5% paid in the home country count towards the tax in Canada?
3. How do we determine the fair market value at the time we became canadian residents? I cannot find any documentation
4. Do we need to declare the sale to CRA?
Thank you
Just a few questions about selling a foreign personal use property.
Context:
It is a vacation house.
Never been rented or used for income.
We did not buy the house but built the house.
We do not know the value of the house when we moved to Canada.
We did not declare it as it is a personal use property
We will need to pay 5% of the selling price as tax to the country of origin (Not Canada)
Question:
1. Do we need to pay tax on capital gains?
2. If yes to 1. Does the 5% paid in the home country count towards the tax in Canada?
3. How do we determine the fair market value at the time we became canadian residents? I cannot find any documentation
4. Do we need to declare the sale to CRA?
Thank you
