Q & A: Taxation of Property Owned Before Landing

CIC News
Published: September 1, 2001

Q. I own a house in my home country which I intend to sell after I land in Canada. I will declare it upon my landing along with other funds I intend to bring in Canada at a later stage.

1) Do I have to make an estimation of the value of my house, i.e., the money I will be bringing in Canada as a result of the selling?

2) Will I be subjected to paying an income tax on the money resulted from the selling, considering this is an assets I have prior to my landing in Canada?

Answer: You have asked as to the taxation in Canada on gains which accrued prior to your becoming resident in Canada.
Immediately before you become a resident of Canada, you will be deemed to have disposed of your home and have reacquired it at the fair market value. As such, you will pay tax in Canada upon the actual disposition of your house only on the gain which you earned after you became a resident of Canada.

An evaluation of the value of the house will be necessary to determine the fair market value at the time you became resident in Canada.

The nature of this facility is to provide a general response to a general question. Under no circumstances should anyone act on this information without obtaining analysis and counsel from a qualified advisor with respect to the specific situation.

Phillip Nadler, CA
Richter Usher & Vineberg

Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Top Stories
Five things to do in your first week as an international student in Canada
Returning to Canada: Immigration Checklist and best practices
Ontario, British Columbia, and Manitoba invite candidates in this week’s PNP results
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
More in Provinces
Ontario, British Columbia, and Manitoba invite candidates in this week’s PNP results
Ontario, BC and Manitoba have nominated candidates for PNPs this week.
Ontario, British Columbia, Quebec, Manitoba, and PEI invite candidates in latest provincial immigration draw results
Five provinces have invited candidates in the most recent provincial immigration draws.
What the changes to Alberta’s healthcare delivery system mean for newcomers across the province
Alberta province of Canada flag on flagpole textile cloth fabric waving on the top sunrise mist fog
New immigration pilots and policy changes come into effect for Quebec
A couple looks down Mt. Tremblant in Quebec. New changes have come to Quebec's immigration system.
Link copied to clipboard