Liquidating foreign property.

[dom44]

Thank you

[CanadianCapitalist]

I'm no tax expert, so you should do your own DD on everything.

1) Foreign personal property (i.e. property that you own for your own use and not for income) does not count towards the CRA definition of foreign property. Therefore, you do not have to file form T1135. See this post: http://www.canadiancapitalist.com/ow...le-form-t1135/

2) You have to pay capital gains on disposition of foreign personal property. In this case, you'll have capital gains of $1m. You *may* receive a credit for foreign taxes paid but you'll have to check the double-taxation treaty yourself or consult a tax accountant familiar with tax matters of the home country and Canada.