Cap gains on real estate when moving from US to Canada

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tchains
Posts: 14
Joined: Mon May 07, 2018 4:58 pm

Cap gains on real estate when moving from US to Canada

Post by tchains »

Hi there, bought an investment property/rental in 2013 when I was a US tax resident, moved back to Canada in 2015, and now looking to sell. Assume IRS treats cap gains as sale price minus cost basis on initial purchase (and depreciation/capital adjustments). How does CRA treat cap gains in this case? May be moving back to US this year - would it be advantageous to wait until then?
nelsona
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Location: Nowhere, man

Re: Cap gains on real estate when moving from US to Canada

Post by nelsona »

Is this a Cdn property?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
tchains
Posts: 14
Joined: Mon May 07, 2018 4:58 pm

Re: Cap gains on real estate when moving from US to Canada

Post by tchains »

US
tchains
Posts: 14
Joined: Mon May 07, 2018 4:58 pm

Re: Cap gains on real estate when moving from US to Canada

Post by tchains »

Any thoughts?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cap gains on real estate when moving from US to Canada

Post by nelsona »

For Canada, the tax clock starts ticking when you entered Canada, and ends when you leave Canada for this property. So you would have cap gains tax only on the portion after you become resident, until you sell. since you owned the property before coming to Canada, you would not be subject to cap gains tax if you still hold it when you leave.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
tchains
Posts: 14
Joined: Mon May 07, 2018 4:58 pm

Re: Cap gains on real estate when moving from US to Canada

Post by tchains »

nelsona wrote:
> since you
> owned the property before coming to Canada, you would not be subject to cap
> gains tax if you still hold it when you leave.

very insightful thanks. anywhere you can point me to this verbiage somewhere in CRA documents? Immigrant guide perhaps?
tchains
Posts: 14
Joined: Mon May 07, 2018 4:58 pm

Re: Cap gains on real estate when moving from US to Canada

Post by tchains »

Found it, section 4 here for anyone else's reference. Thanks a mil Nelsona!

https://www.canada.ca/en/revenue-agency ... rnToCanada
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