T2062 & Tax on sale of Canadian property
Moderator: Mark T Serbinski CA CPA
For my earlier explained situation I have some additional questions:
I sold my Canadian property in 2015 and filled out T2062 as well paid the 25% withholding tax in 2015 itself. Then in 2016 I filed the Canadian taxes for the same capital gains and got some refund back from that 25% withholding I had paid.
My question, if I want to use my taxes paid as deduction, I should do that against my 2015 tax return in the US (I assume I can amend the return) or I do it against my 2016 US tax return?
Thank you in advance!
I sold my Canadian property in 2015 and filled out T2062 as well paid the 25% withholding tax in 2015 itself. Then in 2016 I filed the Canadian taxes for the same capital gains and got some refund back from that 25% withholding I had paid.
My question, if I want to use my taxes paid as deduction, I should do that against my 2015 tax return in the US (I assume I can amend the return) or I do it against my 2016 US tax return?
Thank you in advance!
Deductions can only be claimed in the year they are PAID, so in your case that would be 2015. Your earlier post seem to indicate you had paid the tax in 2016, but this was not the case.
And it can only be the taxes that were paid and not refunded later (in any future year). So you can only claim the taxes as calculated on your 2015 tax return: the 2015 withholding minus the refund on your return.
And it can only be the taxes that were paid and not refunded later (in any future year). So you can only claim the taxes as calculated on your 2015 tax return: the 2015 withholding minus the refund on your return.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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liam_thompson
- Posts: 1
- Joined: Mon Jul 07, 2025 6:52 am
Re:
navb wrote:
> For my earlier explained situation I have some additional questions:
>
> I sold my Canadian property in 2015 and filled out T2062 as well paid the
> 25% withholding tax in 2015 itself. Then in 2016 I filed the Canadian taxes
> for the same capital gains and got some refund back from that 25%
> withholding I had paid.
>
> My question, if I want to use my taxes paid as deduction, I should do that
> against my 2015 tax return in the US (I assume I can amend the return) or I
> do it against my 2016 US tax return?
>
> Thank you in advance!
You should update your 2015 US tax return to include the Canadian withholding tax you paid. If you received a refund in 2016, make sure to reflect that on your 2016 US tax return. It's a good idea to consult a tax expert to ensure everything is filed correctly.
> For my earlier explained situation I have some additional questions:
>
> I sold my Canadian property in 2015 and filled out T2062 as well paid the
> 25% withholding tax in 2015 itself. Then in 2016 I filed the Canadian taxes
> for the same capital gains and got some refund back from that 25%
> withholding I had paid.
>
> My question, if I want to use my taxes paid as deduction, I should do that
> against my 2015 tax return in the US (I assume I can amend the return) or I
> do it against my 2016 US tax return?
>
> Thank you in advance!
You should update your 2015 US tax return to include the Canadian withholding tax you paid. If you received a refund in 2016, make sure to reflect that on your 2016 US tax return. It's a good idea to consult a tax expert to ensure everything is filed correctly.