My question is: Applicable to both US and Canada QUESTION: I hope to sell a vacant lot in Port Charlotte Florida. Do I require a lawyer to handle the tax papers for both countries or does the broker in the us do these. This is the first and last time for such a undertaking and I woould like to do so with the least trouble. I am 86 and my wife 82. --------------------------------------------------------------------------- david ingram replies: You are better off finding someone like myself who prepares both countries at the same time. Assuming that the lot is in both names, you will each have to file a US federal form 1040NR with schedules D to report the capital gain and schedule 6251 to calculate the actual tax under the alternative minimum tax rules. For Canada you will need to report the gain (converted to Canadian dollars of course) on schedule 3 of the Canadian Return. To get credit in Canada for the tax paid to the USA, you have to fill in schedule 1 of the T1 General return. On page 2 of schedule 1, you will put the amount of tax paid to the US on line 431 and the actual taxable profit on line 431 and then follow the calculations to determine the foreign tax credit. Usually the figure on line 433 is the same as the figure you ended up with on line 127 unless you have other capital gains included in the amount on line 127. If you do not get to use all the foreign tax credit up against federal tax, you can claim the excess on the Provincial form 428, We are always available to look after the taxes for you by mail if you do not find someone locally. 70% of our business is done with people living 1,000 to 12,500 miles away in over 80 countries. Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Call (604) 280-0600 to have your question answered. BC listeners can also call 1-866-778-0600. Callers to the show and questioners on this board can also attend the Thursday Night seminars on finance and making your Canadian Mortgage Interest deductible. 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 9 AM to 9 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 <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 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"
