Sent: Wednesday, August 24, 2005 7:37 AM
To: taxman at centa.com
Subject: Fw: Non resident selling a real property
Hi,
First, I would like to thank you for your emails. I learned so much about
tax issues related to non resident Canadians.
I bought a Condo in Ontario in 2002 for $106,000. I paid land transfer tax
and fees of about $3000. I lived in the Condo until 2003 December. Then I
moved to USA and became non-resident of Canada. We rented the Condo and
filled NR6 for both 2004 and 2005. When I left Canada, I filled a form
declaring that the condo worth about 110,000. In July 2005, I sold the
condo for $125,000. I gave the buyer 5000$ to repair the property. The
closing cost and bank fees were about $2000.
What actions I need to take? What costs can be deducted? how much will be
the approximate taxes I owe?
Cxxxxxxxxxx
=======================================
david ingram replies:
Sounds like you are making about $8,000. The Canadian tax on that is about
$1,000. You will also have to report it on your US return on schedule D
(although you could explore claiming it as a principal residence there as
well on a prorated basis for the exemption since you were not in it for a
full 24 months).
If you end up taxable which is not likely, you will claim the foreign taxes
you paid to Canada as a credit on form 1116.
I am assuming that you did not use a Realtor. If you did, the real estate
commission will be deductible as well.
Hoping this helps
Remember, although I will not be there for the rest of August,
Answers to this and other similar questions can be obtained free on Air
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