My_question_is: Applicable to both US and Canada
Subject: Buying a US Realty
Expert: taxman at centa.com
Date: Wednesday July 05, 2006
Time: 01:57 PM -0700
QUESTION:
Hello,
My husband and I (both Canadian citizens, residing in Montreal) are
considering to buy a property in L.A., where we go frequently to visit as I
have relatives there.
Questions:
1) Are there any purchase restrictions? If so, what are they?
2) Could we rent it out, if we so want to? Any restrictions?
Thank you so much!!!
-------------------------------------------
1. No purchase restrictions unless you end up in an adult only community in
which case, you may limit your ability to rent to others.
2. Of course you can rent it out.
You will have to file a 540NR California return and a 1040NR US federal tax
return with Schedule E to report the rental income each.
The Figures will then be converted to Canadian currency and you will put
them on Schedule T776 of the Canadian Return and schedule TP 128-V of the
Quebec TP-1 return
If you have had to pay tax to the US and / or California, you will claim
credit on lines 431 and 433 of schedule 1 of the Canadian return by filling
out form T2209. Any amounts not used by the Federal return are then claimed
on line 409 of the Quebec Schedule E - note that for Quebec, you will have
to complete form TP-772-V first to calculate the Provincial foreign Tax
credit first.
This is, of course, what we do for a living and I will be glad to help out
if necessary.
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is 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 Vancouver (LA) time -
(please do not fax or phone outside of those hours as this is a home office)
email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com/> www.david-ingram.com
<http://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
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Be ALERT, the world needs more "lerts"
David Ingram expert income tax help and preparation of US Canada Quebec US
State and Mexico non-resident and cross border returns with rental dividend
wages self-employed and royalty foreign tax credits
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