QUESTION:
Dear Sir/Madam,
I am a landed immigrant of Canada and am working currently in the US with
L-1 visa. I would like to purchase a house as the first time buyer in
Canada. I have questions below:
1). Can I deduct the mortgage interests and the property tax of my Canadian
house from my US income?
2). Will my mortgage and the purchased house in Canada be considered a
strong tie to Canada so that I have to prepare tax returns for both Canada
and the US?
3). Can I borrow the mortgage under my name but entile the other person (for
example my parents) as the owner of the house?
4). If the 3) is true, how can my parents transfer the house to my
possession later on without any tax liability?
Best regards,
JXXXXXXXX
==============================
david ingram replies:
1. yes
2. If it is empty, the CRA will look at you and may try and tax you on your
US income. If it is rented, you will have to file a Canadian rental return
called a 216(4)
3, Yes - have them hold it in trust
4. if held in trust, it will just transfer. However, if it increases in
value while you are a non-resident, the increased value is taxable when you
move in unless you file an election under 45(3).
There is still a tax owing but you do not have to pay it until you sell it.
Glad to look after your returns if you are having trouble finding a US
Canadian consultant/preparer where you are.
----------------
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=========================================
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Res (604) 980-3578 Cell (604) 657-8451
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