I have an older client who immigrated to Canada in 2019 and got her permanent residency in Canada in 2022. She went back to China for five months to visit in 2024. She sold her house in China in 2025 with the help of her family. Her daughter lived in the house from 2022 to time was sold. In China, they have to pay tax when they sell the property.
I am reporting the sale of the property in her tax return as her own residential but not sure if the full amount before tax deduction should be reported or the net amount. I am also concerned about the years (2019 to 2025) that she was not living in the house how to count it. Would there be a capital gain?
I read this section, Income Tax Folio S1-F3-C2, Principal Residence - A principal residence outside Canada ,
Should a non-resident of Canada who owns a property outside Canada become a resident of Canada at any particular time, the provisions of the Act normally apply to deem that person to acquire the property at that time at fair market value, thereby ensuring that any unrealized gain on the property accruing to that time will not be taxable in Canada
Any help I would really appreciate it.