Personal Finance

Sale of foreign principal residence

  • Last Updated:
  • Apr 9th, 2017 7:25 pm
[OP]
Newbie
Nov 30, 2015
76 posts
3 upvotes
Vancouver, BC

Sale of foreign principal residence

If I designate a foreign house as my principal residence, can I claim foreign tax paid on the sale on my Canadian return in any way?
4 replies
Deal Fanatic
Feb 9, 2009
7676 posts
4589 upvotes
dk1998 wrote:
Apr 9th, 2017 2:40 pm
If I designate a foreign house as my principal residence, can I claim foreign tax paid on the sale on my Canadian return in any way?
nope...cdn property only.

it will be considered cap gains... obviously you will need to speak to an accountant about this but you wouldn't be able to claim it tax-free like a cdn property if thats what you meant...
[OP]
Newbie
Nov 30, 2015
76 posts
3 upvotes
Vancouver, BC
Sanyo wrote:
Apr 9th, 2017 3:15 pm
nope...cdn property only.

it will be considered cap gains... obviously you will need to speak to an accountant about this but you wouldn't be able to claim it tax-free like a cdn property if thats what you meant...
I'm pretty sure I can designate a foreign property as pr if it meets all the requirements. Just want to know if I can claim the foreign tax paid on the sale
Member
Mar 13, 2012
329 posts
83 upvotes
Sarnia
You do not specify the type of tax you paid, but this CRA document on the Foreign Tax Credit excludes the following:
1.9 Examples of taxes that are not levied on net income or profits, and therefore generally will not qualify for a foreign tax credit under section 126 include the following:

resource royalties
sales, commodity, consumption, or turnover taxes
succession duties or inheritance taxes
property or real estate taxes
customs or import duties
excise taxes or duties
gift taxes
capital or wealth taxes
documentary or stamp taxes
Any exceptions to this would be covered in the tax treaty (if there is one) between Canada and the jurisdiction where your claimed primary residence was located. Sounds as if you need to call CRA or find a specialist accountant.
[OP]
Newbie
Nov 30, 2015
76 posts
3 upvotes
Vancouver, BC
kellymisty wrote:
Apr 9th, 2017 6:42 pm
You do not specify the type of tax you paid, but this CRA document on the Foreign Tax Credit excludes the following:



Any exceptions to this would be covered in the tax treaty (if there is one) between Canada and the jurisdiction where your claimed primary residence was located. Sounds as if you need to call CRA or find a specialist accountant.
Thank you very much

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