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 » Tue Mar 17, 2020 12:58 pm

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

Post by nelsona » Thu Mar 19, 2020 11:44 am

Is this a Cdn property?
Nelsona Non grata. Non pro. Search previous posts. 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 » Thu Mar 19, 2020 12:42 pm

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 » Mon Mar 23, 2020 1:42 pm

Any thoughts?

nelsona
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Location: Nowhere, man

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

Post by nelsona » Mon Mar 23, 2020 8:00 pm

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. Search previous posts. 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 » Tue Mar 24, 2020 11:18 am

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 » Tue Mar 24, 2020 4:27 pm

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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