If we sell our vacation home in the Bahamas do we need to pay capital gains on the money returning to our bank in Canada? It was only used by us and is not a rental.
If we sell our vacation home in the Bahamas do we need to pay capital gains on the money returning to our bank in Canada? It was only used by us and is not a rental.
We payed to have the vacation home built in the Bahamas in 2012. We may sell the home soon. Do we need to report the sale to CRA? Do we pay capital gains although the home is not in Canada? The CRA always asks us to report foreign investments over $100,000 but only if it is not personal use, so I have never reported that we built the home in the Bahamas. We spent $165,000 in U.S. dollars to build it. It is worth about the same amount now.
If we sell our vacation home in the Bahamas do we need to pay capital gains on the money returning to our bank in Canada? It was only used by us and is not a rental.
You're correct that you did not have to report its purchase because its personal use, but you do have to pay capital gains on it since it's not your principal residence. Even if you're breaking even with no taxes owed, you need to report the sale. (The CRA has made it mandatory to report home sales, even for principal place of residence, despite there being no tax consequences).
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