Real Estate

Taxation issues on disposition of property by non-residents

  • Last Updated:
  • Sep 5th, 2015 6:50 am
Tags:
None
[OP]
Newbie
Sep 3, 2015
2 posts
Toronto, ON

Taxation issues on disposition of property by non-residents

Hi Everyone,

I have a situation here where myself, non-resident in Canada, owned a townhouse and now planning to sell it.

I was an International Student before and that is how pretty much the reason why I got that townhouse at the first place - and now after moving out of Canada to go back to my own country, I feel that this is time for me to sell the townhouse. Question regarding taxation just occurred to me and now I am left wondering what to do with the taxation part.

I had no valid SIN number (used to have one) - I have only done one time Income Tax Filing (just to get back some tax credits on my excessive tuition fees).

What would you recommend me doing next to amend this situation, and enable me to proceed with the disposition of the property?

Thank you all!
3 replies
Deal Fanatic
May 9, 2007
9548 posts
2825 upvotes
Vancouver Island, BC
I think you might get better discussion in either the "personal finance" or "investing" forum.
"It is difficult to get a man to understand something when his salary depends on his not understanding it." Upton Sinclair

“Our house is on fire.” Greta Thunberg
Deal Expert
User avatar
Sep 19, 2004
23788 posts
5464 upvotes
where I belong
poifullmeiji wrote: Hi Everyone,

I have a situation here where myself, non-resident in Canada, owned a townhouse and now planning to sell it.

I was an International Student before and that is how pretty much the reason why I got that townhouse at the first place - and now after moving out of Canada to go back to my own country, I feel that this is time for me to sell the townhouse. Question regarding taxation just occurred to me and now I am left wondering what to do with the taxation part.

I had no valid SIN number (used to have one) - I have only done one time Income Tax Filing (just to get back some tax credits on my excessive tuition fees).

What would you recommend me doing next to amend this situation, and enable me to proceed with the disposition of the property?

Thank you all!
Read this thread, started just 3 days ago
Also, talk to a lawyer and Google some

Capital gains tax from selling Canadian property for Canadian non-resident - RedFlagDeals.com Forums
capital-gains-tax-selling-canadian-prop ... t-1802907/
Which Credit Cards to sign up? >> Jerry's List of Credit Cards with $200+ Welcome bonus/Aeroplan & AMEX Churning FAQ
AMEX Personal 60K || Business Platinum 75K || Biz Gold 40K
Deal Fanatic
User avatar
Sep 1, 2013
5768 posts
638 upvotes
I agree that you need to get some professional help for this, but would recommend a tax accountant rather than a lawyer (lawyer is overkill for this situation).

But off the top of my head, the issues are:

- Will you realize a capital gain? Estimate what you would sell the place for, subtract the costs of selling the place (e.g. realtor fees). If it is still signifigantly more than what you paid for it, you have capital gain to deal with.

- The more complicated part is your residency status. You are a non-resident now. Were you a residence of Canada for tax purposes while living in the townhouse (likely yes since you filed a return and got tax credits). In this case, you get a 'principal residence' exemption so don't owe tax on the capital gain while you were living in the house.

But again, this could be complex, so you likely need professional help.

Top