Form T2062 for disposition of Canadian Property

[Lolapalola]

Hi. I am a dual US/Canadian citizen living in the US for 28 years. I am selling a property in Canada I have had for 31 years. In form T2032 for the certificate of compliance, can I check the exemptions box due to the tax treaty with US and Canada and thereby not paying any capital gains in Canada, but I would put the capital gains on my US income tax instead. Thank you

[nelsona]

No. You MUST pay tax in Canada (and US) on the sale. You will get credit for the Cdn taxes on your US return.

[Lolapalola]

Thank you. That’s what I thought but I was hoping. Lol

I have another question. I have had the property for 31 years and we have done extensive renovations inside and outside. I have a lot of the bills, but over the years many more bills have faded or gone missing. How do I claim the renovations for cost basis. Can I make just make a list of all the renovations done per year or are they sticklers about having bill for each renovation. I can also include before and after pics and construction pics. Thx

[nelsona]

You need receipts for any claim to adjust cost basis to be approved.

[Lolapalola]

Thank you

Do you happen to know where I send the completed certificate of compliance application? I can’t seem to find it online. It is for Manitoba. Would it be to your local CRA office?

Thanks