Canadian Land Sale

[Tavia]

I’m a family shareholder in a Canadian farm corporation. I ama US CITIZEN and Resident. I have only filed US tax returns for the past 25 years. My portion of the Canadian income from the land is $500,000. How do I declare this income? Do I file a Canadian tax return even though I’m not a Canadian resident? (I am a Canadian citizen). Or do I just file it as foreign income on my US tax return?

[nelsona]

You MUST file a Cdn return (for the province the land is located in) AND you need to ALSO declare the sale as a non-resident within DAYS of the sale or you face daily penalties.
See form T2062.

You also must declare the income on your 1020, and IRS will give you credit for the CDn tax you pay.

[nelsona]

You need to speak to the lawyer handling the sale and mention you are non-resident.