Some much needed help from you kind people.
I own a vacation home in Honduras purchased in 2006.
We moved from Canada to US on L1A visa in October of last year.
When filing my departure tax do I include this property on my T1243 and pay capital gains assuming I have some? I see form T1161 which looks like I would definitively need to put it there. I really don't understand the difference between these 2 forms.
If so any advice on how I determine fair market value? I'm not sure I can find an appraiser in Honduras and have no idea the market for this property. Would I just look at Caribbean realty sites? Do I need to submit proof of how I determine the FMV?
This is all very stressful.
Thanks,
Rich
Form T1243 and foreign personal use vacation property
Moderator: Mark T Serbinski CA CPA
T1161 is a list of ALL properties you own, except for the exceptions
T1243 is a list of all properties that are deemed to be sold at deparature.
Pretty much everything on T1243 will be on T1161, but T1161 could have many more items which are not subjest to deemed dispo, but CRA wants to know this (to make up their own mind).
Everthing on T1243 also has to go on your schedule #, so the reduncy is complete.
As to FMV of your property, why would you not be able to find and appraiser in honduras. You were able to buy a place there, how did you know how much you were supposed to pay?! Same now.
You do not provide proof, but you need to have it in your records for future.
You will also need this for US tax purposes if you should sell when living in US, otherwise you will be responsible to pay tax in US on the entire gain.
T1243 is a list of all properties that are deemed to be sold at deparature.
Pretty much everything on T1243 will be on T1161, but T1161 could have many more items which are not subjest to deemed dispo, but CRA wants to know this (to make up their own mind).
Everthing on T1243 also has to go on your schedule #, so the reduncy is complete.
As to FMV of your property, why would you not be able to find and appraiser in honduras. You were able to buy a place there, how did you know how much you were supposed to pay?! Same now.
You do not provide proof, but you need to have it in your records for future.
You will also need this for US tax purposes if you should sell when living in US, otherwise you will be responsible to pay tax in US on the entire gain.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Then you can do the same for FMV now.
Not sure why you needed FMV whne you built (other than for the land) since your costs are just that: costs. Your cap gains will be based on the costs of buying the land and building your porperty, not FMV at the time you built it.
Not sure why you needed FMV whne you built (other than for the land) since your costs are just that: costs. Your cap gains will be based on the costs of buying the land and building your porperty, not FMV at the time you built it.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing