Question from a US citizen inheriting Canadian real property -
> > > Dear Mr. Ingram, > > I came across your e-mail while researching my situation and hope that you > may be able to offer some insight or direct me to an appropriate source. > Any information or direction you can provide would be helpful! > > My mother purchased some timber land in Prince George, BC many years ago. > She is a US citizen as I am. She is 91 and I have full power of attorney > for financial and health matters as she is no longer able to manager her > affairs. She has a living trust, created by a US attorney and the > property in BC is not listed in the trust. The property is in her name > only. > > My question is: > * can Canadian property be put into the us living trust? > * If so, would the property transfer to her heirs tax exempt if her > total estate is under the 2006 US estate tax exempt amount? > * If it cannot be put into the living trust, what tax implications are > her heirs facing upon her death and how does the property get transferred > to the heirs? > * Is there any advantage to gifting the property to her heirs prior to > her death? > > I appreciate any insight you can offer on my situation. > > Thank you, > ------------------------------------------------------------- > david ingram replies: > > If your mother were to die tomorrow, the property is deemed to have been > sold at the moment of death and there is capital gains to pay in Canada. > If her estate is in the US estate taxable area, the capital gains tax paid > to Canada can be used as a tax credit against US estate tax. > > If she were to gift it to the heirs now, there would be a deemed disposal > at fair market value (FMV) in Canada and capital gains tax would be > payable. > > Transferring it to the living trust would trigger a capital gains tax. > > For the most part, the living trust you speak of does not likely save any > US estate tax and certainly is not saving any income tax in the interim as > its income is taxed on your mother's 1040 as if it did not exist. > > Read the Federal Trade Commissioner's exhortation on living trusts: > > http://www.ftc.gov/bcp/conline/pubs/services/livtrust.htm > > > A well written discourse on the abuses associated with living trusts can > be found at: > > http://www.quatloos.com/traps/livtrust.htm > . > I love the Following treatise on Living Trusts by the New York State > Attorney general's department. The NYAG makes the point that although a > living trust "might' save estate tax, the same thing can be done with a > will. > > http://www.quatloos.com/traps/livtrust.htm > > ------------------------------------------------------------------- > 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 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 <http://www.centa.com>. If you forward > this message, this disclaimer must be included." > > > Be ALERT, the world needs more "lerts" > > > David Ingram gives expert income tax & immigration help to non-resident > Americans & Canadians from New York to California to Saudi Arabia to > Mexico to China or Chile - Cross border, dual citizen - out of country > investments are all handled with competence & authority. > > New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia, > Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers, > Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay, > Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec, > Moncton, > Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego, > Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa, > Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham, > Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence, > Houston, Albany, Framingham, Cambridge, London, Paris, Prince George, > Prince > Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon, > Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers, > Berlin, Hamburg > Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing, > Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer, > Olds, > Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie, > Davidson, > Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh, > Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo, > Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto, > Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish, > Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, > Penticton, > Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis, > Centralia, > Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St > James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears, > Truro, Charlottetown, Summerside, Niagara Falls, Albany Zimbabwe > > 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 > > > > 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. > Pennsylvania, Rhode Island, Rockwall, > South Carolina, South Dakota, Tennessee, > Texas, Utah, Vermont, Virginia, > West Virginia, Wisconsin, Wyoming, > British Columbia, Alberta, Saskatchewan, > Manitoba, Ontario, Quebec City, > New Brunswick, Prince Edward Island, > Nova Scotia, Newfoundland, Yukon and > Northwest and Nunavit Territories, > Mount Vernon, Eumenclaw, Coos Bay > and Dallas Houston Rockwall Garland > Texas Taxman and Tax Guru and wizzard > wizard - consultant - expert - advisor -advisors consultants - gurus - > Paris Prague Moscow Berlin > Lima Rio de Janeiro, Santaigo Zimbabwe > > > David Ingram expert income tax help and preparation of US Canada Mexico > non-resident and cross border returns with rental dividend wages > self-employed and royalty foreign tax credits > As of July 1, I am limiting my replies to three per day (I get up to 50 > questions) from non-clients. I am just too busy to answer many questions > and am limiting myself to 3 a day except for my regular paying customers. > And, if I have already answered one of yours free in the last six months, > it is unlikely that the system will let you through with another free one > now. > > Sorry - too many questions to answer (over 2,000 at the moment- all of > which I have saved over the last two years with the intention of answering > them). I am adding your name to our Q & A list and another question may > answer yours. AND, I have answered over 6,000 questions at > <http://www2.jurock.com/askexpert/expert.asp?aid=121&cid=63> or > www.centa.com <http://www.centa.com> and you should be able to find your > answer by going there or more specifically, to > <http://www.centa.com/search.htm> > > However, if you can not find your answer, > answers to this and other similar questions can be obtained free on Air > on the last Sunday morning of each month (Sunday May 28 and June 25 are > next). > > On the last Sunday at 9:00 AM on 600AM in Vancouver, david ingram will be > a guest on Fred Snyder of Dundee Wealth Management's LIVE talk show > called "ITS YOUR MONEY" > > Those outside of the Lower Mainland of British Columbia will be able to > listen on the internet at > > www.600AM.com <http://www.600am.com/> (9:00 AM Los Angeles Time every > Sunday morning) > > > Call (604) 280-0600 to have your question answered. BC listeners can also > call 1-866-778-0600 free of charge. > > Callers to the show and questioners on this board may also attend the > Vancouver Thursday Night seminars on finance and making your Canadian > Mortgage Interest deductible. > > There are 17 different topics covered and every Thursday night is > different. They are presented by Fred Snyder at his office at 1764 West > Seventh (the Spence Diamond building at 7th and Burrard) in Vancouver. > Call (604) 731-8900 to register and be sure to bring your spouse, > significant other or financial advisor. > > I will be at the Thursday evening following my last Sunday appearance. I > will be at the Thursday, Feb 2nd 7 PM seminar to talk for a short time > about mortgage interest as a deduction. > > And, of course, we are always here to prepare your US / Canadian and State > returns by emailed pdf files, snail mail, fax or courier. We also do paid > consultations by phone or in person for $400 Cdn per professional hour. > ------------- > > > This from "ask an income tax and immigration expert" from www.centa.com > <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or > www.featureweb.com <http://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 > > > > > > - > > > > . > > > -------------- next part -------------- A non-text attachment was scrubbed... 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