Selling U.S. Property
Posted date : Aug 9, 2019.
I am considering selling my U.S. condo and wonder if you have any advice on this. I have owned it for 10 years and it has gone up in value, so I know that I will pay capital gains tax in the U.S. Will the profit be counted as income in Canada? If I give some of that profit as gifts to my children, will they have to pay income tax on it? I realize that this is a good problem to have but, nevertheless, any advice you can give me will be appreciated.
Ed.: The profit will be considered as a capital gain in Canada as well, and will be taxable as such. After that, you can give portions of the gain to your children as gifts and there is no tax on that gift, assuming that they are Canadian residents.