Form T1243 and foreign personal use vacation property

RichC999 · Post by **RichC999** » Tue Feb 28, 2012 1:00 pm

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

nelsona · Post by **nelsona** » Tue Feb 28, 2012 1:46 pm

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.

RichC999 · Post by **RichC999** » Tue Feb 28, 2012 2:29 pm

Thanks for the information.

We purchased the land and had the the property built all through a Canadian based company for the very reason of not having to deal with the local development, construction etc. We do not speak Spanish. We determined FMV by looking at other properties for sale.

nelsona · Post by **nelsona** » Tue Feb 28, 2012 3:17 pm

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.

JGCA · Post by **JGCA** » Tue Feb 28, 2012 4:05 pm

You may be able to claim the principle residence exemption even if the poperty is outside of Canada if you ordinarily lived in it during the years of ownership since you mentioned it was vacation porperty this cwill reduce cap gains if you have no other property to designate

nelsona · Post by **nelsona** » Tue Feb 28, 2012 4:39 pm

JG, on your other point in the other thread about one prporty per year per couple.
I believe copules can designate property independantly.

JGCA · Post by **JGCA** » Tue Feb 28, 2012 8:02 pm

Not since 1984 thay can't any longer