Canadian Property Willed to US
Dear David, I follow your responses almost daily with admiration and appreciation. Thank you for this incredible service! My Canadian parents, living in BC, own a chalet in Whistler built in 1984 for approx $200,000 and now worth approx. $1.5 M. My father passed away 2 years ago and my 85 year-old mother wanted to place me, as the eldest of three siblings, on the title jointly, in place of my father. I am now a US citizen living in the US. In reading some of your responses, I now realize I would have to pay capital gains taxes somewhere along the line so we quickly gave up on that idea. My mother has been advised to make a Will instead, as I have 2 siblings with 6 children between them. My father’s dying wish was that I manage the chalet (need to pay all bills and maintain upkeep, but I can rent it, live in it, allow extended family to use it, or a little of all. The rental suite usually covers expenses). When I die, these 6 grandchildren inherit the chalet (my 2 children have been cut out of the inheritance – can I pass my part through to them anyways?). If I inherit the chalet, are similar penalties imposed due to my US citizenship status? If I move to Canada for 2 years, are taxes waived? Does it make a difference if I claim dual citizenship? We are generally fairly articulate but are getting confused in the complexity of it all. Please advise. Most appreciatively, --------------------------- david ingram replies: Because it is a second home for all of you, anyone inheriting it will have to pay capital gains tax on its eventual sale. However, if your name was put on it for the time being, it is not "yours" unless that is the intent when your name goes on. If your name is on title holding it in trust for your mother and the eventual beneficiaries, i is not yours, you are simply a or the trustee. As it is, when your mother passes, it will be subject to Canadian capital gains tax.\r You are already a dual citizen - you did not lose your Canadian citizenship when you became an American. I do not understand why your two children have been cut out when your mother wants to put you on the title. However, if your mother did just put you on the title without your signing some undertaking that you were the trustee and would further "divvy it up as follows", when she passed, it would all be yours which might offend everyone else. You need to sit down with your mother and all the siblings and hammer it out and keep good notes. I would be happy to participate to explain the tax ramifications to everyone. 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He could help with the drafting of a will and any codicils necessary to effect your mother's wishes. ========================== David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists Home office at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com www.centa.com www.david-ingram.com Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" international non-resident cross border income tax help assistance expert preparation & immigration consultant david ingram, experts on rentals mutual funds RRSP RESP IRA 401(K) & divorce preparer preparers consultants This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily basis with expatriate tax returns with: multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax Immigration Wizard Antarctica Rwanda Guru Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Garland, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon. 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