Sale of overseas home by foreign spouse.

[Nasi Lemak]

Hi folks,

Before moving to Canada last year, my wife sold her home in Macedonia. I have read that, for individuals, any foreign residence sale before becoming a Canadian resident is not taxable in Canada. But I'm wondering how it works for married couples when the sponsor is Canadian.

So my question is:
Do I, as the Canadian spouse, need to declare this on my income tax form? We transferred a portion of the proceeds to my account before her landing. We were married at the time of the sale.

Thanks!

 

[truesmile]

Did she live there? I ask since you used the word 'residence'. If Canadian tax laws apply then no, even we don't pay (income) tax on the sale of a property that is a 'principal residence'.

 

[Nasi Lemak]

Thanks for the reply, truesmile. That's reassuring. It was the primary residence for both of us for 5 years, and the apartment was in her family name. My main concern was that we transferred a large portion of the funds to my account before landing.

 

[abrakadabra]

Thanks for the reply, truesmile. That's reassuring. It was the primary residence for both of us for 5 years, and the apartment was in her family name. My main concern was that we transferred a large portion of the funds to my account before landing.

It's fine to transfer the large amount, but they might ask an explanation (I showed the bill of sale with amount)

 

[2calgary]

It's fine to transfer the large amount, but they might ask an explanation (I showed the bill of sale with amount)

Hi, you showed bill of sale voluntarily or officer asked for this during landing process?

Thanks