Canadian citizen selling House in Canada while living in US

[msuri98]

Hi,

Here is my situation.

I am living in US for last 10 months.

I filed my cdn departure tax return for FY 2014.
I filed US tax return as resident.
I own a property in Canada which I rented from mid July 2014 and have been paying 25% of the gross rental income to CRA via payments account online.
Now that I am selling the house before the one year of me becoming non-resident of canada, I want to know what forms I need to fill to avoid 25% withholding of my sale.

Please suggest.

Thanks

[nelsona]

Look on CRA website for non-resident forms. Your broker/lawyer will need to be involved.

here is start:

make sure you file your 216 return for nCRA to recoup some of your rental income tax.

You will also need to report the rental income in US, wirth depreciation, and will also have to report the sale on your 1040.

Lots of threads on this. Happy browsing.

[JGCA]

By filing the forms in advance you can limit the withholding to be based on the actual gain not the gross proceeds but then you still need to file a tax return in April to disclose the actul gain and be tax on that less the withholding CRA took.

It depends on the gain it probably may be zero id it was your principle residence 1 yr absence will not exclude the exemption.

Many posts on this, you need to do it however in time of the signing to limit the withoiding on the gross proceeds