Hello,
I sold my property earlier this year and just got back the tax clearance. However, noticed a 25% tax on capital gain. I bought this condo as a pre construction and have been renting it out for the past few years. Does the 25% on capital gain make sense?
Do I need to file this on the US side when I file US taxes next year? I have been reporting rent on this property for the last 2-3 years.
Likely additional taxes on the US side?
I have been reading something around you don't need to pay capital gain tax on the US side if you use the fund to buy another property within a year. Does this apply in here? I just bought another condo in Toronto, think I'm qualified under this bucket, no?
Thank you!!
Sold property in Canada
Moderator: Mark T Serbinski CA CPA
Re: Sold property in Canada
Yes you must report the gain on both a CDn return and on your US return.
You cannot take really advantage of the like purchase rules UNLESS the property is in Canada, but doing so does not benefit you, since you must pay cap gains in Canada regardless, so you might as well get credit for those taxes on your US return as well as bump up your cost basis on your next property.
You cannot take really advantage of the like purchase rules UNLESS the property is in Canada, but doing so does not benefit you, since you must pay cap gains in Canada regardless, so you might as well get credit for those taxes on your US return as well as bump up your cost basis on your next property.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Sold property in Canada
Thank you guys for your help.