Capital gains for mobile home sale
Posted date : Aug 2, 2023.
In your spring 2023 edition, in the Bird Talk section, there was a question from Mr. William Gordon who wanted to know if there were any capital gains to be repaid following the sale of their mobile home on leased land. Your answer was that, given the gains made on the sale, there would be a tax on the capital gain. My question is, which government will tax the capital gain? American, Canadian or both? Thanks in advance for your response.
Francois Gauthier
(no location provided)
Ed.: If you do not own the land, your property is not considered “real estate.” However, a capital gain on the sale of the mobile home is taxable in the United States. A U.S. tax return would be required to be filed in the year following the year of the sale. When you file your Canadian tax return, you would declare a deduction for the amount of tax that you paid in the U.S. in order to avoid double taxation.
