Real Estate

If I sell my investment property in USA, do I need to pay any tax to Canada?

  • Last Updated:
  • Feb 15th, 2018 7:11 am
[OP]
Penalty Box
Jan 4, 2013
578 posts
115 upvotes
TORONTO

If I sell my investment property in USA, do I need to pay any tax to Canada?

Property was used for rental , property was in a location mainly attractive to Norwegians, didn’t gain much appreciation. Want to use the proceeds of the same in west coast for another investment.

I am not intending to take the profit back to Canada.

In this case, do I need to pay any tax to Canada?
10 replies
Deal Addict
Jan 17, 2006
1077 posts
808 upvotes
Toronto
gimegime wrote:
Feb 13th, 2018 10:10 am
Property was used for rental , property was in a location mainly attractive to Norwegians, didn’t gain much appreciation. Want to use the proceeds of the same in west coast for another investment.

I am not intending to take the profit back to Canada.

In this case, do I need to pay any tax to Canada?
You have to report sale in both US and Canada even if you are planning to reinvest it right away in US. Will CRA find out if you don't report, likely not, but you should report it by the book.
Sr. Member
Mar 14, 2006
903 posts
387 upvotes
Toronto
It is considered foreign investments so you still are required to report the gain against your income tax.
[OP]
Penalty Box
Jan 4, 2013
578 posts
115 upvotes
TORONTO
Is it reported in the same section as like an investment property in Canada? Do you have a field number? Thanks.

The US part is good for me, I know how to file it.
Smiley22 wrote:
Feb 13th, 2018 10:59 am
It is considered foreign investments so you still are required to report the gain against your income tax.
Deal Addict
Oct 6, 2015
1300 posts
685 upvotes
Not only do you need to report the sale, but you might need to do a voluntary disclosure if you weren't reporting the ownership of foreign property on the appropriate form as required on taxes. Or face the consequences of failing to file the T1135.
Sr. Member
Jan 13, 2005
814 posts
65 upvotes
Montreal
burnt69 wrote:
Feb 13th, 2018 2:00 pm
Not only do you need to report the sale, but you might need to do a voluntary disclosure if you weren't reporting the ownership of foreign property on the appropriate form as required on taxes. Or face the consequences of failing to file the T1135.
What if it is owned by a corp you control ? How does the filing or reporting goes ?
Deal Guru
Aug 2, 2010
12505 posts
3062 upvotes
Here 'n There
If you didn't have to pay tax on your worldwide income as a Canadian then we'd all only be investing outside the country!
Deal Addict
Aug 30, 2011
2922 posts
710 upvotes
Ottawa
eonibm wrote:
Feb 14th, 2018 1:10 pm
If you didn't have to pay tax on your worldwide income as a Canadian then we'd all only be investing outside the country!
^ this. Of course you have to pay tax on the income.
Deal Addict
Jul 30, 2015
1566 posts
672 upvotes
Toronto, ON
eonibm wrote:
Feb 14th, 2018 1:10 pm
If you didn't have to pay tax on your worldwide income as a Canadian then we'd all only be investing outside the country!
What if you're not a resident of Canada? Do you still have to pay taxes in Canada?
Deal Addict
Aug 30, 2011
2922 posts
710 upvotes
Ottawa
canoek wrote:
Feb 14th, 2018 10:13 pm
What if you're not a resident of Canada? Do you still have to pay taxes in Canada?
Be more specific. If you're a "factual resident" living temporarily outside Canada then yes, you have to. If you have emigrated to another country and have no Canadian-source income, then no. There are other situations, but I don't want to explain them all without knowing what you mean.

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