My wife and I own a house in Canada since 1991. We moved to USA in 2000 and left the house rented. In 2009 we came back and live in the house. We moved again to the USA in 2010, but our son stayed in the house till now. We want to sell our house to our son. We want to apply for the Certificate of Compliance. Should we use just form T2062 or both with T2062A (we rented for a few years)? Do we need to use form T2091 (IND) and T2091 (IND)-WS? Is it worth to hire an accountant to apply for this certificate, instead?
Marvin
Sale of canadian property from non-resident
Moderator: Mark T Serbinski CA CPA
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- Location: Arizona
Re: Sale of canadian property from non-resident
You need to use the 2062 forms for non-residents, You will be able to designate which years the property was your PR on those form. It can only be your PR for the 1991 to 2000 and 2009/2010.
I don't think an accountant is needed, however your real estae agent/lawyer should be able to help you with these,as they are needed for the sale.
I don't think an accountant is needed, however your real estae agent/lawyer should be able to help you with these,as they are needed for the sale.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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- Posts: 18
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Re: Sale of canadian property from non-resident
Thanks Nelsona for your answer. Do I need to have written FMV for the house everytime changed from residential to rental (2000), form rental to cottage (2009) and an appraisal for the current value (present)?
Nica
Re: Sale of canadian property from non-resident
Your tax will be based on the entire period you owned it, accounting for the RATIO of the time it was your principal residence.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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Re: Sale of canadian property from non-resident
I thought CRA will require FMV for each time the house change status. I heard that I should have filed a deposition at every change. Is this supposed to be that complicated to apply for the certificate of compliance?. You sound like this is very simple to do.
Nica
Re: Sale of canadian property from non-resident
No. You do not need change of use FMV when dealing with non-residency.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Sale of canadian property from non-resident
Besides, you DIDN'T file a change of use the first three times you changed, so why would you need to do it now?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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- Posts: 18
- Joined: Mon Jan 26, 2009 11:37 pm
- Location: Arizona
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- Posts: 18
- Joined: Mon Jan 26, 2009 11:37 pm
- Location: Arizona
Re: Sale of canadian property from non-resident
Nelsona, I have another question, if I did not report the change in use in 2009 (when took back possession after rental), what happened with the capital gain for that period that was not previously reported?. I already starting filling up the two forms T2062 and T2062a. I guess the T2062 cover the entire period from 1992 to 2020 (year of sale) and the T2062a just cover the rental period (2002 to 2009). In the rental income tax I started with FMV of the house and then I depreciated every year until 2009. I am using these two number to calculate my depreciation recapture. Is this right?
Nica