US resident sells T2062 T2062A T1159 T776 1116 Non-res tax returni ncome tax & immigration help estate family trust expert i

QUESTION: I have moved to the US since 2000 and current a green card holder. I still have a property in canada and currently listed as second home in the US tax return. I am planning to sell this property in the near future. Do I need to pay capitial gain tax in both US/Canada and how much?
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david ingram replies:
It sounds like the second home in Canada has being sitting empty.
When you sell it, the purchaser's lawyer is going to withhold 25% of the gross sale price as Canadian Withholding Tax - UNLESS - you file form T2062 within 10 days of the sale.  . 
T2062 - http://www.cra-arc.gc.ca/E/pbg/tf/t2062/t2062-07e.pdf
The purpose of the T2062 is that it will identify the value of the house the day you crossd the border and the purchaser will only have to withhold tax on 25% of the difference invalue between the day you left and the day you sold it.You can NOT claim real estate commissions and other costs of sale on this form which means when the return is actually filed there is always a refund..
THIS IS NOT THE TAX RETURN, it is merely a withholding tax form.
Tax RETURN
You will then have to file a tax return to report the sale next year.  This return will tax you on 50% of the gain by using schedule 3 and 1.  You can claim the real estate sales commissions, lawyers fees and other costs of sale at this point.  File a T1 tax return with Schedule 3 and Schedule 1.
NON-RESIDENT T1 Return - http://www.cra-arc.gc.ca/E/pbg/tf/5013-r/5013-r-06e.pdf
Schedule 3 - Capital Gains - http://www.cra-arc.gc.ca/E/pbg/tf/5000-s3/5000-s3-06e.pdf
Non-Resident Schedule 1 - http://www.cra-arc.gc.ca/E/pbg/tf/5013-s1/5013-s1-06e.pdf
All these figures are then converted to US dollars and put on schedule D of the US return.  taxes paid to Canda are claimed on US schedule 1116.
RENTAL
If the property was rented, you also have to file form T2062A and make sure that your T1159 and T776 forms were filed for each year the property was rented. 
T2062A - http://www.cra-arc.gc.ca/E/pbg/tf/t2062a/t2062a-07e.pdf
T1159 - http://www.cra-arc.gc.ca/E/pbg/tf/t1159/t1159-06e.pdf
T776 - http://www.cra-arc.gc.ca/E/pbg/tf/t776/t776-fill-06e.pdf (fillable) 
If rented, make sure the T776 rental figures were converted to US dollars and put on schedule E.  Any taxes paid to Canada would go on the schedule 1116 you used for the capital gains tax paid.
Schedule E - http://www.irs.gov/pub/irs-pdf/f1040se.pdf
Schedule 1116 - http://www.irs.gov/pub/irs-pdf/f1116.pdf
Note that the T2062 and T2062A forms will likely be the same from year to year.  However, the US and Canadian schedules shown above are all 2006 forms and you will need to get hold of the equivalent 2007 or 2008 forms when you actually make the sale.
And, of course, we can look after all of it for you when the time comes. That is what we do.
David Ingram wrote: 
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Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation  in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico  family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority.
Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or is to be returned to Canada or a phone consultation is in Canada.
This is not intended to be definitive but in general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,000 would be the same with one rental 
$1,200 would be the same with one business no rental
$1,200 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
$1,500 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits  no move in or out 
$1,600 would be for two people with income from two countries
$2,800 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely $450
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales)  are likely $50.00 for the first and $20.00 each after that.
Just a guideline not etched in stone. 
This from "ask an income trusts tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily basis with expatriate tax returns with multi jurisdictional cross and trans border expatriate problems  for the United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax  Immigration Wizard Antarctica Rwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income Tax Convention
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