Capital gains on selling property

[Tomasz]

If I own a foreign property that has been my primary residence for 2 years before coming to Canada and then I started renting it out, do I still pay capital gains tax when I sell it?

 

[mad_hatter]

You are deemed to have acquired the property at fair market value at the time when the property use changes from personal-use to income producing. Any future gains will be taxable.

 

[Hurlabrick]

If I own a foreign property that has been my primary residence for 2 years before coming to Canada and then I started renting it out, do I still pay capital gains tax when I sell it?

Yes. What the other poster said. Did you get a proper valuation of the property when you moved to Canada since it is from that value to the sale proceeds that you will be assessed in Canada for CGT. You must also declare rental income as overseas income to CRA and will of course also be taxed on that as Income Tax.

 

[mad_hatter]

In addition, the tax payable is calculated using adjusted cost base.