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I had purchased a home back in India in 2006 used for family and personal use and using funds I transferred from Canada to there. Since the cost amount then was around 85K CAD, I did not have to declare and file the 1135 form. If I wish to sell that property and repatriate the funds back here, what is the procedure? I should file 1135 when I sell and then calculate cap gains in CAD and pay taxes here? But, I would have to pay taxes back in India when I sell as well. Will it be double taxed? I have a property here in Canada as well which is my primary.
If the sales proceeds are more than $100,000 CAD, and are kept in an Indian account, then you must complete form T1135. In addition, you must report and pay Canadian tax on the capital gain from the sale of the Indian property. You can claim a foreign tax credit on your Canadian tax return for the Indian taxes paid in respect of the sale.
My fees are as follows:
- Preparation of Form T1135 - $100
- Preparation of Canadian tax return (including foreign tax credit calculation) - $400
Disbursements and taxes are extra.