Sale of Canadian vacation home

[bgiez]

I have a US citizen and US resident client who sold her Canadian vacation home in 2012. It was owned long term. Apparently the Canadian government does not include costs of sale when determining whether there was a gain or loss and the client had to pay a couple thousand in taxes before the proceeds of the sale could be released to her. When costs of sale (such as realtor's commission) are included, as we in the US would do, there would be a non-deductible loss. Is this tax included as a cost of sale or is there something else I can do with it?

Is there anything I should be on the lookout for regarding this sale?

Thanks for your help.

[veritas]

Converting

I have a US citizen and US resident client who sold her Canadian vacation home in 2012. It was owned long term. Apparently the Canadian government does not include costs of sale when determining whether there was a gain or loss and the client had to pay a couple thousand in taxes before the proceeds of the sale could be released to her. When costs of sale (such as realtor's commission) are included, as we in the US would do, there would be a non-deductible loss. Is this tax included as a cost of sale or is there something else I can do with it?

Is there anything I should be on the lookout for regarding this sale?

Thanks for your help.

Canadian to US dollars on the date of sale and foreign tax credit-which doesn't sound like you are going to get.

[bgiez]

converting

Canadian to US dollars on the date of sale and foreign tax credit-which doesn't sound like you are going to get.

So then I would convert the purchase price as well as the improvement costs to US Dollars - uh oh. I don't have the exact purchase date, or the dates of the improvements, but I think the US Dollar was worth more than the Canadian at the time she purchased. So maybe she has a gain. I see an extension in her future.

Well, she has a stock loss she could use to offset the gain.

[Burke]

I just had to convert CAD to USD for a Canadian resident, only I averaged it over the entire year since she is salaried. For the first time in 5 years, it came out to $1.00 for $1.00. How long had she owned the property? I might have the rate if it wasn't too long ago.

[bgiez]

Thanks, Burke

I just had to convert CAD to USD for a Canadian resident, only I averaged it over the entire year since she is salaried. For the first time in 5 years, it came out to $1.00 for $1.00. How long had she owned the property? I might have the rate if it wasn't too long ago.

for the offer. I know she has had the property for at least 7 or 8 years and I found rates on-line for specific dates for that time frame. She is out of town right now so I can't get the dates from her.

[Burke]

Great. Didn't know you could find old rates that far back. What site did you use?

[bgiez]

canadian exchange rate

Great. Didn't know you could find old rates that far back. What site did you use?

I used http://www.bankofcanada.ca/rates/exc...ear-converter/ ( don't know why the whole url doesn't show when I post - the missing part is /exchange/10-year-converter/ )

There are also other sites that goes back further, such as http://www.oanda.com/currency/historical-rates/