Sell off property and pay tax on capital gains.

[PR_User]

Hi All,

Me and my husband are permanent residents of Canada with a valid PR card.

My spouse owns a property in India where my inlaws are residing.Recently we bought a house here (joint ownership).

Planning to sell of the property back home to help with the mortgage here.Please share if any body has done the same thing and about the capital gains that needs to be paid.

Thanks,
Krithika.

 

[PR_User]

**Bump**

 

[Bryanna]

Me and my husband are permanent residents of Canada with a valid PR card.

My spouse owns a property in India where my inlaws are residing.Recently we bought a house here (joint ownership).

Planning to sell of the property back home to help with the mortgage here.Please share if any body has done the same thing and about the capital gains that needs to be paid.

Hi Krithika,

The percentage of capital gains tax that you would have to pay will depend on how long your spouse has owned the property. If your spouse has owned the property for more than 36 months then the tax on the resulting gains will be computed as Long Term Capitals Gain (LTGC). Exemption from paying LTGC is possible if one invests the gains accrued in another single residential unit or in specific bonds.

As you would like to transfer the sale proceeds to Canada, you cannot avoid paying LTGC of 20% (I'm assuming your spouse has owned this property since 36+ months).

I strongly recommend that you consult a few chartered accountants before you sell this property to check ways to limit the tax liabilities. For example, one way would be to factor in any expenses incurred for home renovation or reinvestment in specific bonds (to some extent) can reduce the tax liability


Cheers

 

[JaskiratSINGH123]

Sir I am jaskirat and I am student here in Canada and my coop is going on and it’s 30 hrs per week unpaid so I just want to know if I was allowed to work for 20 hours with my unpaid coop or not??

 

[Bryanna]

Sir I am jaskirat and I am student here in Canada and my coop is going on and it’s 30 hrs per week unpaid so I just want to know if I was allowed to work for 20 hours with my unpaid coop or not??

Please post in the International Students section

 

[PR_User]

Hi Krithika,

The percentage of capital gains tax that you would have to pay will depend on how long your spouse has owned the property. If your spouse has owned the property for more than 36 months then the tax on the resulting gains will be computed as Long Term Capitals Gain (LTGC). Exemption from paying LTGC is possible if one invests the gains accrued in another single residential unit or in specific bonds.

As you would like to transfer the sale proceeds to Canada, you cannot avoid paying LTGC of 20% (I'm assuming your spouse has owned this property since 36+ months).

I strongly recommend that you consult a few chartered accountants before you sell this property to check ways to limit the tax liabilities. For example, one way would be to factor in any expenses incurred for home renovation or reinvestment in specific bonds (to some extent) can reduce the tax liability


Cheers

Thanks a lot for your inputs.Much appreciated !!