On TN since April/10 - have offer to buy home in Canada

mardibc · Post by **mardibc** » Sun Jan 23, 2011 2:47 pm

I have been living in NJ and working in NYC since April/10 on a 3 yr TN. Today received an offer to buy my home in BC. I believe I need to complete the sale as a non resident and have 25% withheld and file with CRA as a non resident. Looking at all this info is overwhelming, have I basically got the right idea? Any idea how long CRA takes to process this type of transaction? Thanks!

nelsona · Post by **nelsona** » Mon Jan 24, 2011 6:05 am

Yes, non-residents must comply with certain reporting requirements before and after sale of Cdn property, and this might include the buyer being required to withhold upto 25% of the proceeds.

See:
http://www.cra-arc.gc.ca/tx/nnrsdnts/cm ... properties
and
http://www.cra-arc.gc.ca/E/pub/tp/ic72- ... 17r5-e.pdf

Basically, You will need to submit forms T2062.

As to your final tax, if this was your principal residence before you left, you will include form T2091, and you will owe no tax, neither in US nor Canada, if you sell before April 2011 (ie. less than 1 year since departure). You may even be exempt from the withholding based on this.

mardibc · Post by **mardibc** » Mon Jan 24, 2011 6:54 pm

Thank you, your help is very much appreciated !!