Jump to content
Sign in to follow this  
Paul H

Selling primary residence in Canada

8 posts in this topic

Recommended Posts

My fiancee Jennifer is under the impression that she can't activate her k-1 visa until after the sale of her primary residence in Canada for fear of being taxed with a 40% capital gains tax since she would no longer be a resident of Canada once she made her POE to the states. Is anyone here familiar with the tax laws in Canada to confirm or debunk this?

Thanks!


-Paul & Jenni

Share this post


Link to post
Share on other sites

Doing a little research on my own it appears the capital gains concern isn't an issue if the sale is shortly after becoming a non-resident since there won't be much of any gain. The real concern is that the purchasers attorney will withhold 25% of any gains from the sale to give to the government. It appears you either get that back after the next years return is filed or you could file a proposed disposition of property form to determine what the actual withholding amount should be. Then the attorney receives a compliance letter telling them how much to withhold.

Here's to hoping for a quick sale :o


-Paul & Jenni

Share this post


Link to post
Share on other sites

Hi there. I was in the same situation. My home in Canada went under contract while I was still living there. Unfortunately, the closing date was after the expiry date on my visa, so I had to leave before it closed. As it turns out, there are no tax or capital gains issues if the home was your principal residence prior to emmigrating. There will be a hold on 25% of the funds until Canada Revenue gives the all-clear on whether she owes any back-taxes. If she is current, a release document will be sent to the closing attorney. If she has any outstanding amounts, they will deduct those monies and release the remainder. There were some other details related to all this which I cannot recall, but if she speaks with the closing attorney, he/she will be able to explain it properly. The good news is that this is good news. :)


iagree.gif

Share this post


Link to post
Share on other sites

Hi there. I was in the same situation. My home in Canada went under contract while I was still living there. Unfortunately, the closing date was after the expiry date on my visa, so I had to leave before it closed. As it turns out, there are no tax or capital gains issues if the home was your principal residence prior to emmigrating. There will be a hold on 25% of the funds until Canada Revenue gives the all-clear on whether she owes any back-taxes. If she is current, a release document will be sent to the closing attorney. If she has any outstanding amounts, they will deduct those monies and release the remainder. There were some other details related to all this which I cannot recall, but if she speaks with the closing attorney, he/she will be able to explain it properly. The good news is that this is good news. :)

Thanks for the info Krikit! How long did it take for them to release the 25% in your case?


-Paul & Jenni

Share this post


Link to post
Share on other sites

Hi there. I was in the same situation. My home in Canada went under contract while I was still living there. Unfortunately, the closing date was after the expiry date on my visa, so I had to leave before it closed. As it turns out, there are no tax or capital gains issues if the home was your principal residence prior to emmigrating. There will be a hold on 25% of the funds until Canada Revenue gives the all-clear on whether she owes any back-taxes. If she is current, a release document will be sent to the closing attorney. If she has any outstanding amounts, they will deduct those monies and release the remainder. There were some other details related to all this which I cannot recall, but if she speaks with the closing attorney, he/she will be able to explain it properly. The good news is that this is good news. :)

good.gif

I went through the same thing and thanks to Krikit's information back then I knew what to ask my lawyer. :) Turns out my lawyer was well aware of what forms to submit to CRA and received the certificate of compliance in about 2 -3 weeks (they told me it could take about a month.) In my case, I POEd mid June, my house closed end of July and since the lawyer had the CRA form by then all funds were released on closing.

Good luck.


USCIS

NOA1 08/19/08

NOA2 01/20/09

NVC

Received 01/26/09

Completed 02/13/09 (19 Days)

Interview Assigned 03/27/09 (6 weeks after NVC completion)

Medical

04/14/09 (Toronto)

Interview

Montreal 05/12/09 (88 days after NVC completion) **APPROVED**

POE

06/16/09 Buffalo

07/02/09 Welcome Letter Received

07/07/09 Applied for SSN

07/10/09 "Card production ordered" email received

07/13/09 SSN received

07/14/09 "Approval notice sent" email received

07/17/09 GREEN CARD received

Removal of Conditions

03/21/11 I-751 mailed to VSC

03/23/11 I-751 received at VSC

03/29/11 Cheque Cashed

03/30/11 NOA1 received (3/24/11)

04/11/11 Biometrics appointment notice received

05/05/11 Biometric appointment

12/13/11 **Approval date** (5 days short of 9 months!)

12/19/11 Approval letter and green card received

Share this post


Link to post
Share on other sites

For those of you that POE'd prior to the closing of the sale of your house, what issues if any did you have not being in Canada for the closing? Did your lawyer handle it for you? Did you just have them fed-ex the documents for you to sign? Any advice?

Thanks!


-Paul & Jenni

Share this post


Link to post
Share on other sites

For those of you that POE'd prior to the closing of the sale of your house, what issues if any did you have not being in Canada for the closing? Did your lawyer handle it for you? Did you just have them fed-ex the documents for you to sign? Any advice?

Thanks!

I moved my furniture and left two days prior to closing. All I did was leave the keys with my lawyer and signed all necessary papers the day before I moved. I had no issues at all, the money from the sale showed up in my bank account before the end of the business day on the day of closing. good.gif

Edited by OBX

USCIS

NOA1 08/19/08

NOA2 01/20/09

NVC

Received 01/26/09

Completed 02/13/09 (19 Days)

Interview Assigned 03/27/09 (6 weeks after NVC completion)

Medical

04/14/09 (Toronto)

Interview

Montreal 05/12/09 (88 days after NVC completion) **APPROVED**

POE

06/16/09 Buffalo

07/02/09 Welcome Letter Received

07/07/09 Applied for SSN

07/10/09 "Card production ordered" email received

07/13/09 SSN received

07/14/09 "Approval notice sent" email received

07/17/09 GREEN CARD received

Removal of Conditions

03/21/11 I-751 mailed to VSC

03/23/11 I-751 received at VSC

03/29/11 Cheque Cashed

03/30/11 NOA1 received (3/24/11)

04/11/11 Biometrics appointment notice received

05/05/11 Biometric appointment

12/13/11 **Approval date** (5 days short of 9 months!)

12/19/11 Approval letter and green card received

Share this post


Link to post
Share on other sites
 
Didn't find the answer you were looking for? Ask our VJ Immigration Lawyers.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  
- Back to Top -


Important Disclaimer: Please read carefully the Visajourney.com Terms of Service. If you do not agree to the Terms of Service you should not access or view any page (including this page) on VisaJourney.com. Answers and comments provided on Visajourney.com Forums are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Visajourney.com does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. VisaJourney.com does not condone immigration fraud in any way, shape or manner. VisaJourney.com recommends that if any member or user knows directly of someone involved in fraudulent or illegal activity, that they report such activity directly to the Department of Homeland Security, Immigration and Customs Enforcement. You can contact ICE via email at Immigration.Reply@dhs.gov or you can telephone ICE at 1-866-347-2423. All reported threads/posts containing reference to immigration fraud or illegal activities will be removed from this board. If you feel that you have found inappropriate content, please let us know by contacting us here with a url link to that content. Thank you.
×