My question is: Applicable to both US and Canada QUESTION: Hello David I read some answers that seem to be related to my situation, but I would like to make an effort at clarification, in any event. I am one of those silly Canadians who went ahead and filled out one of those declarations stating I have no ties with Canada. I wish I had known your view of this before! Anyhow, I have relatively long term plans here in Japan and I would like to start investing in some real estate back home, specifically rental income. Is it your opinion that this is generally a bad idea, no matter what kind of safeguards I take? It sounds like you think the government could come after me, not matter what I do. Any extra advice would be very much appreciated. GXXXXXx --------------------------------------------------------- david ingram replies. Japan has an income tax treaty with Canada. Article IV of the treaty determines where you will be taxable on WORLD INCOME. You are always taxable in the country where you earn the income unless it is exempted by treaty. An example of exempt income would be a Canadian who earns less than $10,000 in the US or vice-versa. The US/Canada tax trreaty exempts the taxation in the source country if the person is in the country less than 183 days. Therefore, as a resident of Japan, you can buy property in Canada and it does not make you taxalbe if it is rented out to strangers for period's of a year or more. On the oher hand, if you bought a downtown condo in vancouver and left it empty for your use for two months of the year when you come back to Canada, Canada would have every right to tax you. Go to www.centa.com and read the centre of US/Canada taxation for some sample cases involving Libya, Saudi Arabia and the USA. David Ingram of the CEN-TA REALTY Group US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 913-9133 - Fax 913-9123 [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 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. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts"
