Are there special Tax considerations for a Canadian citizen or Canadian
company to buy property in the USA.
Thanks,
AXXXX
==============================
david ingram replies:
I modified the question slightly.
The rules are different for a Canadian resident who is also a US citizen.
However, a Canadian Resident who buys a US property to live in or use as a
recreation property has no special tax considerations from year to year.
They only have a problem when it is sold. When sold, there is a 26% minimum
federal tax on the property. In California the rate is another 5% or
higher.
43 other states have different rates.
If the property is rented, you must file US 1040NR tax returns to report the
rent and in California, you would file a 540NR.
Failure to file the 1040NR can result in a penalty of up to $10,000 PLUS 30%
of the gross rent even if you had a rental loss.
.
Hope this helps
Yours truly
David Ingram of the CEN-TA Group
US / Canada / Mexico tax and working Visa Specialists
US CANADA Real Estate Taxation Specialists
US Canada Real Estate Taxation Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.500 / Virus Database: 298 - Release Date: 7/10/03
What's Related