Am I in right area (Foreign income)? My husband sold primary house in Portugal to pay off divorce.

[cdalves]

I'm using TurboTax Standard. My husband sold primary home in Portugal. He borrowed money here in Canada to pay off ex-wife . I know he doesn't have to pay tax if its primary home. Am I in right area (foreign income), ? Do I have to claim it?.

[TurboTaxTerry · Accepted solution]

If you are designating the foreign property as a Principal Residence you need to make a declaration in Turbo Tax. Firstly go back to the Profile section in the beginning and in the Home and Other Property section select "Did you dispose of property(s) in 2016" as YES.

As you move through the Income section of Turbo Tax you will come to the screens for notifying CRA of the transaction and that you have designated the property for some or all of the years of ownership.

This means that if you currently own a home in Canada it would be considered as a Taxable Capital Asset from the time of Purchase until the end of 2016.