My question is: Applicable to both US and Canada QUESTION: My son is in Graduate school at univ. of chicago for another 4 years, I reside in Toronto. I'm considering purchasing a condo unit for him to reside in while there then selling it. What would be my US and Canadian tax implications on purchasing and reselling the condo unit. --------------------------------------------------------------------------- david ingram replies: When your son is in the US on a student visa he can be treated as a NON-Resident of the US and is entitled to keep his Ontario Medical and Hospitalization (up to 5 years) and Ontario driver's licence and car licence. However, that makes him liable for Canadian Income Tax because he is a resident of Ontario. I would prefer to make him a resident of Illinois and have him get an Illinois Driver's Licence, Car licence AND own the condo in his name. That way, his condo will be capital gains tax free in both countries and he will only pay tax in Illinois. He does lose his Ontario Medical with that scenario but most (in my experience) graduate students are working within the program and have local medical provided. Of course, this is when he packs up the information and sends us his tax returns to North Vancouver. ============ If you do not do that, the condo is subject to Illinois and US federal income tax and then must be reported again in Canada and 50% of the profit is subject to tax in Canada at your highest marginal tax bracket which is likely 47%. The good news is that Canada will give you credit for the tax paid to Illinois and the US and it will likely balance itself off. Answers to this and other similar questions can be obtained free on Air every Sunday morning. (this Sunday, July 31 is a rerun) 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" 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/> . 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