Capital Gains on Property

jazi · Post by **jazi** » Sun Feb 25, 2007 1:54 am

Hoping someone could enlighten me as to whether or not there is an exemption for capital gains on property owned and sold in Canada for dual citizens of the US and Canada? Thanks.

Carson · Post by **Carson** » Mon Feb 26, 2007 11:26 am

Assuming you mean real property, the short answer is no on either side of the border.

jazi · Post by **jazi** » Mon Feb 26, 2007 1:05 pm

Thanks for the reply. So am I to assume that I would have to then pay capital gains on a single real estate sale to both countries?

Carson · Post by **Carson** » Mon Feb 26, 2007 1:16 pm

[quote="jazi"]Thanks for the reply. So am I to assume that I would have to then pay capital gains on a single real estate sale to both countries?[/quote]

No, the country where the real estate is located gets to tax the gain first. Then the other country can also tax you, but must allow a foreign tax credit. The idea is that there should be no double tax, though the tax credit system isn't perfect and a full credit is not always available.

Check this board - there should be plenty of threads on your situation.

jazi · Post by **jazi** » Mon Feb 26, 2007 1:27 pm

Thanks again. I will do some digging on the other posts.