Sold our primary house in 2006. Do we have to pay taxes?

slamarre · Post by **slamarre** » Tue Jan 30, 2007 4:55 pm

Hi,

We moved to Florida on March 2006 and we decided to rent a house because our house in Quebec was not sold yet.

Finally, we sold our house in May 2006. We made 115K $ kind of profit because we sold it around 215K$ and we have to clear our loan + the realtor commission.

We will be using this money to buy a new house soon (Feb or March 07) in Florida.

Do we have to declare that 115K$ as a capital gain? I think in Canada, when you sell you home, there is no taxes. Am i right.

Thanks.

nelsona · Post by **nelsona** » Tue Jan 30, 2007 5:10 pm

Since you became non-resident in 2006, you were *supposed* to file special forms before you sold the house.

But, in terms of tax, there is no tax in either US or Canada (unless CRA can say that your house increased in value between March and May -- which is unlikley).

slamarre · Post by **slamarre** » Tue Jan 30, 2007 7:58 pm

nelsona,

Are you referring to the form NR 73 of the Canadian Revenue Agency?

The name of the form is

DETERMINATION OF RESIDENCY STATUS (LEAVING CANADA)

If not, could you be more precise?

Thanks.

nelsona · Post by **nelsona** » Tue Jan 30, 2007 10:43 pm

No. The forms are related to non-resident selling Cdn property, T2062, T2062A. Anyways, not to worry. More important was the reporting of your assets on the departure date. Please read the "Emigrants Guide" from CRA.

You should not file NR73; you are non-resident, since march.

slamarre · Post by **slamarre** » Tue Jan 30, 2007 11:08 pm

nelsona,

I am curious to know why you wrote "Anyways, not to worry". Is it because the CRA will not pressure on us because of that?

We have been in the process of moving from October 05 and it is the first time that someone indicate me that form???

Thanks.

nelsona · Post by **nelsona** » Wed Jan 31, 2007 9:30 am

Focus on doing your 2006 taxreturns correctly.