It is a condition for a non-resident who is selling real estate in Whistler to first obtain a Clearance Certificate from the Canada Customs and Revenue Agency (CCRA). The normal wait for a Clearance Certificate is approximately six to eight weeks. Prior to the Canada Customs and Revenue Agency issuing a Clearance Certificate they will want to collect any tax payable with respect to your property purchase and sale in Whistler. This will include any tax payable on the rental income from the property which has not already been remitted, as well as tax on the capital gain experienced on the property and if applicable, recapture of capital cost allowance.

In calculating the capital gain on the Whistler property the CCRA allows the following to be added to the purchase price to determine the adjusted cost base:

• Property Transfer Tax – which was 1% on the first $200,000 and 2% on the balance of the purchase price up to $2 million, then 3% on the amount exceeding $2 million).
• Legal fees and disbursements in conjunction with the purchase of furnishings and renovations included in the selling price. It is critical that you retain the receipts for all furnishings and that they be identified as having been acquired for the Whistler property, as well as any Customs documentation showing furnishings that were acquired in other jurisdictions which have been brought to the Whistler property.
• Goods and Services Tax (GST)
• A portion of the interest on the mortgage payments ( only if the seller has properly elected to have the interest capitalized on their tax return).

CCRA does not allow any deductions from the selling price in determining the gain. The amount required to be remitted on the gain is 25% of the gain. By filing a Canadian tax return subsequent to the sale you can claim expenses such as commission and legal fees and some of the tax may be recovered as well.

All non-resident Sellers should contact their accountants or lawyers with respect to requesting a Clearance Certificate as soon as an accepted offer has been received with respect to the property. Should the completion date be prior to the issuance of the Clearance Certificate a holdback of between 25% and 50% of the sale price will be required by the Purchasers lawyer, until the Clearance Certificate is issued.

Non Resident References:

I work closely with a team of experienced specialists to ensure the process goes smoothly for my clients:

• Linda McKean – www.bdowhistler.com – non-resident tax specialists.
• Michael Atmore – www.lunnyatmore.com – lawyers representing many of our clients.

Download the Non-Resident Sellers ebook