Selling DVC from Canada: A Complete Guide
Canadian DVC owners are among the largest groups of international sellers we work with at DVC Sales. FIRPTA applies to Canadians exactly the same as to sellers from any other country — 15% of the sale price is withheld at closing — but there are important cross-border details that affect how much you ultimately pay in combined US and Canadian tax.
The Canada-US Tax Treaty
Article XIII of the Canada-US Tax Treaty allows the United States to tax gains from the sale of US real property. The treaty does not exempt Canadian sellers from FIRPTA. What it does is prevent double taxation: Canada gives you a foreign tax credit (Form T2209) for the US tax you paid, so you are not taxed in full by both countries on the same gain.
Reporting on Your Canadian T1
Canada taxes residents on worldwide income. You must report the DVC sale on Schedule 3 of your T1 return. As of 2026, only 50% of the capital gain is included in your taxable income. The foreign tax credit for the US tax you paid reduces your Canadian tax on the same gain, often to zero or near zero.
The Exchange Rate Problem
Both your purchase price and sale price were in USD, but the CRA requires reporting in CAD. Use the Bank of Canada daily exchange rate on each transaction date. Because the CAD/USD rate has shifted significantly over the years, your CAD gain can look very different from your USD gain. A contract purchased when the loonie was near parity in 2013 will show a larger CAD gain today because each US dollar is worth more in Canadian terms now.
Filing on Both Sides
After your DVC sale, you need: a US Form 1040-NR (filed after December 31 of the sale year) and a Canadian T1 return (due April 30). File the US return as early as possible, then claim the foreign tax credit on your Canadian return based on the actual US tax paid — not the amount withheld at closing.
For the full Canadian cross-border guide with worked examples, see our Canadian DVC sellers FIRPTA guide.
