# Non-resident status and capital gains tax



## Bordo12 (Oct 13, 2010)

Scenario: I have owned a house for appox 5 years, in that time the house has appreciated in value by approx $70,000. I am moving oversees (Australia) from Manitoba and have an excellent opportunity to rent my house out for a good return. I will be declaring non-tax residency in Canada when I leave. 

I understand that 25% of my gross rental income will be deducted by the CRA (which I can live with). A bigger issue and question mark for me, is what happens to the Capital Gains I have earned to date on the house (70k). If I were to stay in Canada this would not be an issue but I suspect it may be when I go to sell the house in 5+ years. 

There may be some options I haven't thought about - i.e. Incorporating and selling the house to the Inc., selling the house to a family member with a revenue sharing proviso? All advice is greatly appreciated, thank you in advance!


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