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I am a Canadian citizen and have been a permanent resident of Canada for the past 30 years. I will become a non-resident of Canada in June or July of 2020 - I am moving permanently to a country in the European Union (EU). I have recently sold my only home in Canada (primary residence) and the funds from that sale will be deposited in my Canadian bank account on March 10. My questions:
1) Am I subject to a capital gains tax on the sale of my only home?
2) Since I depart Canada permanently in June or July 2020, I will not be here to file my tax return for 2020 (in March 2021). Do you offer this service for Canadians living abroad?
3) What and when do I need to report to the CRA regarding my departure from Canada to become a permanent resident of the EU?
Thank you for your questions. My answers are below:
1) You will not pay capital gains tax on the sale of your primary residence so long as you live in your primary residence for all of the years that you own it.
2) Yes, I can prepare a departure tax return with the CRA for you even if you're currently residing outside Canada.
3) You need to file a departure return with the CRA to inform them about your change in status to a non-resident of Canada.
If you would like my assistance with your Canadian Departure Tax Return, please send an email to me - amadan@madanca.com