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Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 100929
Experience:  Lawyer
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My Son and I bought a Vacation Property in Arizona, US in

Customer Question

My Son and I bought a Vacation Property in Arizona, US for 46000 in Can. Funds in 2011. Title in both our names. We sold the Property in 2015 for 103,000 Can. How do we claim the Capital gains and do we have to pay capital gains even if our ownership is 50% each. Please Advice
Submitted: 1 year ago.
Category: Canada Tax
Expert:  Legal Ease replied 1 year ago.

Are you asking about what you pay in Canada or the US?

Customer: replied 1 year ago.
Canada Please
Expert:  Legal Ease replied 1 year ago.

What you would do is you would file a tax return and you would report one half of the increase in value as a capital gain. One half of that would then go into your income for tax purposes.

However, you would receive foreign tax credit for any tax paid in the US. So if you paid capital gains tax in the US what you paid would be deducted from what you need to pay to the CRA.

Does that answer your question?