Selling property in Cdn buying in US

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Selling property in Cdn buying in US

Post by lgbgbt88 »


I'm a Canadian working in the US. I'm planning to sell my condo in Toronto and transfer the money to the US for a down payment for a property in NYC. I have two questions - 1) tax implication, do I need to pay tax in both countries? I have declared nonresident in Canada and have been just paying rental in Canada. 2) what's the best way to transfer the money to US. I heard the US may tax on large transfer.

Thank you
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Re: Selling property in Cdn buying in US

Post by nelsona »

1. You will need to report the sale in Canada - PRIOR to the sale. They will determine the withholding tax on the sale. If it was your principal residence when you left, and you left less than a year before selling, there will be no final tax.
You will also report the sale in US, and there may be some tax to pay due to the recapture of depreciation. You mhave been reporting the rent in US (as well as canada with 216 election, correct.

2. There is absolutely NO tax on transferring money from US to Canada or vice versa. Forget whoever you heard that from. As to transferring large sums, you would want to convert any monies into USD in Canada, and bring down US dollars. There are sophisticated ways of trading USD and CAD but I'll leave that to someone else.
I am taking my usual break from this site until May. Always too many tax-form specific questions at this time of year...
nelsona non grata. Non pro. Search previous posts. Happy Browsing :D
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Re: Selling property in Cdn buying in US

Post by JGCA »

Please note Nelsona said you have no final tax in Canada however the attorney in Ontario will withold 25% of the Gross Selling price in escrow for CRA until you submit a reduction certificate for tax request with CRA this has to be done at the time of selling or else the attorney will have to hold 25%
get the paper work in early as possible to avoid this cash flow problem. You will get it back once you file a T1 at end of the tax year but you can avoid it now take note I have been waiting for up to 3 months for these clearance certificates from CRA now with Covid good luck in getting it even in 3 months time.
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