If you are considering selling an investment property, pre-sale assignment, or a residential property you have owned for a relatively short period of time, taking a few minutes to review the tax implications could help you avoid unexpected tax.

When a non-resident sells Canadian real estate, 25%–50% of the selling price may be withheld at closing. While this can come as a surprise, the withholding is not your final tax bill. Understanding how the Section 116 Certificate works — and planning ahead — can significantly reduce the amount withheld and prevent delays in receiving your funds.