capital gains from sale of home in Canada and being a US cit

Witless · Post by **Witless** » Fri Aug 29, 2014 8:27 pm

my wife and i are us citizens and selling a summer home in canada they tell me that there is a 25 percent that will be held at the lawyers in escro till we file a tax return next year. what can or should we do to get this money back.is it a capital gains tax? we have purchased property i the us thinking it would wash the capital gains in canada. Any help or insight would be appreciated.

nelsona · Post by **nelsona** » Fri Aug 29, 2014 11:02 pm

if you file the correct forms before selling (see CRA website) the withholding can be reduced substantially to closer to what you will owe. Your agent should be able to help you on this.

But, this is only withholding tax, and, yes, you would get back what was yours at tax time.

But you really need to file those forms!

http://www.cra-arc.gc.ca/tx/nnrsdnts/cm ... WhenNotify