This is a multi-part message in MIME format. ---------------------- multipart/alternative attachment QUESTION: Hi, I am looking to invest and buy a rental property (single family home, duplex or four plex) in Canada? 1) How do I report the rental income in my US income tax return? 2) What types of taxes would I have to pay to the Canadian government? 3) If I sold the property, how do I report the gain and do I pay tax on this? Thank you, CXXXXXXXX ============================================ david ingram replies: You need a realtor who understands non-resident buyers. If you are looking in Vancouver, we can help you with in-house realtors and outside people as well. You might want to look at www.ChristineLouw.com. Christine is very knowledgeable when it comes to dealing with out of country buyers and Wendy Cook in our office at (604) 980-0321 is also very knowledgeable. After purchase you need a Canadian Agent to sign a Canadian Form NR-6 (before the first day of rent) which agrees to remit non-resident withholding tax to the Canadian Government and then the agent will have to file NR4 forms to report the rent and tax deducted by March 31st of the next year. You will then file a Canadian tax return with a Schedule T776 to report the rental income on a Canadian T! filed under Section 216(4) of the Canadian Income Tax Act. Then we convert the Canadian income tax figures to US dollars and enter them on a US schedule E. The Schedule E forms part of your US 1040 and if you had to pay tax to Canada, you have to claim the Canadian Tax on US form 1116. By now, you have torn half your hair out, thrown your arms in the air and called our office to do it for you. Answers to this and other similar questions can be obtained free on Air every Sunday morning. Starting this Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but 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 David Ingram's US/Canada Services US/Canada/Mexico Tax Immigration & working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Calls accepted from 10 AM to 10 PM 7 days a week Res (604) 980-3578 Cell (604) 657-8451 Bus (604) 980-0321 [email protected] 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 & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate: multi jurisdictional cross and trans border expatriate gambling refunds for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, 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, American and Canadian and Mexican and any of the 43 states with state tax returns, etc. income tax wizard wizzard guru advisor advisors experts specialist specialists consultants taxmen taxman tax woman planner planning preparer of 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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