reply to the reply below
Hi David,
Hi David,
I've worked with John as his client and now
business advisor since 1991 when there was Centa Realty! So technically,
you had my listing in West Van. John suggested I ask you a
question (and say "Hello"). Am thinking about paying cash for a piece of
land in the United States. No mortgage, no rental income, few if any
visits to the property...what happens? More specifically - do I pay
purchase tax? do i pay a sales tax/capital gains in a few years when it
sells?
---------------------------------------------------------------------
david ingram replies:
Every Province in Caanda has different real estate laws.
BC and Ontario have a propery purchase tax.
BC restricts rentals in strata title buildings
PEI has a non-resident restriction on ownership as does Australia.
Every state in the US has different laws with Vermont and Californis (as an example) having an alternative minimum tax on Real Estate profits.
Florida, Washington, Alaska, Nevada, Texas, Wyoming have no personal state return while Tennessee only taxes interest and dividends and New hampshire only taxes self-employed business profits.
The rest and the federal government all tax real estate profits and capital gains.
And the above answer is always subject to change,. When i started in this busienss only about 17 states had income tax and new 43 do.
I do not know of any property purchase taxes in the US but I am sure at least one jurisdiction will have one.
If you want to install a cuilvert, etc, yourself to gain access or drain it and it is a recreational site for you to go and park your motorhome on for weekends, you can do that.
If the intent is to hold for future commercial resale, you can NOT even cut down a tree or install a number on the fence (if there is already a fence since you cannot build a fence wither).
.This older question about doing something to a building, etc, will also help.
david ingram replies:
Every Province in Caanda has different real estate laws.
BC and Ontario have a propery purchase tax.
BC restricts rentals in strata title buildings
PEI has a non-resident restriction on ownership as does Australia.
Every state in the US has different laws with Vermont and Californis (as an example) having an alternative minimum tax on Real Estate profits.
Florida, Washington, Alaska, Nevada, Texas, Wyoming have no personal state return while Tennessee only taxes interest and dividends and New hampshire only taxes self-employed business profits.
The rest and the federal government all tax real estate profits and capital gains.
And the above answer is always subject to change,. When i started in this busienss only about 17 states had income tax and new 43 do.
I do not know of any property purchase taxes in the US but I am sure at least one jurisdiction will have one.
If you want to install a cuilvert, etc, yourself to gain access or drain it and it is a recreational site for you to go and park your motorhome on for weekends, you can do that.
If the intent is to hold for future commercial resale, you can NOT even cut down a tree or install a number on the fence (if there is already a fence since you cannot build a fence wither).
.This older question about doing something to a building, etc, will also help.
-------------------------------------------------------
QUESTION: Hello David,I'm living in
Vancouver, finally paid off the student debt but don't see myself getting into
the expensive Vancouver market. I do
however like to ski and was thinking of buying an
inexpensive trailer (25k Cdn) in Maple
Falls Washington.
However I'm not sure what other expensives
I should expect given that it's in the US.
I'm not trying to make this an investment
with a high return, but I would like to do some
handy work to it to increase the value. If
I add about 10k worth of value, how would that
affect my taxes in the long term?
Thanks for the advice.
----------------------------------------------david ingram
replies:One of my favourite weekends ever was in 1973 at the Chandelier (think
it has a different name now) when marooned at SnowLine because of the gas
shortage when one could only buy gas on odd days if your licence pklatre ende
dwith an odd number and even days when it was an even number.Strangely, it was
that weekend 34 years ago that lets me answer you question now.The cabin I was
staying in was not a rental but was built by the fellow who owned it. When
he was building it, buddies would come down and help him and one weekend, the
INS raided the spot and deported a bunch of his friends for working in the US .
He was fine building it because he owned it but no one else can hammer a nail,
paint a board, install a sink, or carry a shingle if they are not either an
owner or a legal US citizen or US resident with a green card.If your buddy is
working and living inthe US with a TN, H1, O1, P1, L1 or any other visa but a
green card, they cam NOT help you either.And, if you are intending to rent the
trailer out 'EVER', 'you' can NOT hammer a nail, sweep the front steps or clean
the toilet.Assuming you are buying this trailer on its own lot, when you go to
sell, you will owe the US income tax on the profit.If it is your only pioece of
real estate at that time, you will not owe Canada any tax because you can claim
it as your personal residence if you have not bought another place.
-------------------However, I would far prefer that you stretched your resources
to buy something in Canada to live in and combine your present rent and the
payments you would have to make for the trailer to buy your home in Canada. If
you can't afford a one bedroom, buy a studio. Go down to Ikea onteh
Lougheed highway and look at how much they can put into a small space.
Interestingly, I read the other day that Ikea has now sold enough furniture in
North america that 10% of all children are conceived in an Ikea Bed. Now
that is information worth knowing.Good luck
----------------------------------------
-
size=3>xxxxxxxxx wrote:
-YOU CAN FIND THE RULES FROM THE REALTOR SIDE IN
LOUISIANA AT: http://www.lrec.state.la.us/default.htm
Thanks for the reply and
information David. I'll explore a Louisiana tax laws a little
further. Interested in New Orleans and a few vacant lots (after the flood)
that we saw on our last visit.
----------------------
david ingram
replies
Greg Samuels at 604-742-4242 is a Vancouver lawyer who is licenced
to practice in Louisiana and is from New Orleans.
Louisiana Law is based upon the Napoleonic code and has different
nuances than most of the other states.
Be careful. Louisiana is
full of tax lien sales at the moment. Most of them a dangerous thing to
buy.http://www.rogueinvestor.com/Tax_Sales/Louisiana/index_tax_sales_louisiana.html
-----------------------------
David Ingram wrote:
---------------------------------------------------------------------------------------------------------------
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David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
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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
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included."
David Ingram gives expert income tax &
immigration help to non-resident Americans & Canadians from New York to
California to Mexico family, estate, income trust trusts
Cross border, dual citizen - out of country investments are all handled
with competence & authority.
Phone consultations are $400 for 15 minutes to
50 minutes (professional hour). Please note that GST is added if product remains
in Canada or is to be returned to Canada or a phone consultation is in
Canada.
This is not intended to be definitive but in
general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only - no self employment or rentals
or capital gains - you did not move into or out of the country in this
year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no
rental
$1,200 would be the minimum with a move in or
out of the country. These are complicated because of the back and forth foreign
tax credits. - The IRS says a foreign tax credit takes 1 hour and 53
minutes.
$1,500 would be the minimum with a rental or two
in the country you do not live in or a rental and a business and foreign tax
credits no move in or out
$1,600 would be for two people with income from two countries
$2,800 would be all of the above and you moved
in and out of the country.
This is just a guideline for US / Canadian
returns
We will still prepare Canadian only (lives
in Canada, no US connection period) with two or three slips and no capital
gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely
$450
And an American only (lives in the US with no
Canadian income or filing period) with about the same things in the same range
with a little bit more if there is a state return.
Moving in or out of the country or part year
earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and
$25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00
each.
18 RRSPs would be $900.00 - (maybe amalgamate a
couple)
Capital gains *sales) are likely $50.00
for the first and $20.00 each after that.
Just a guideline not etched in
stone.
This from "ask an income trusts tax and immigration expert"
from www.centa.com or
www.jurock.com or
www.featureweb.com. David Ingram deals on a daily basis with expatriate tax
returns with multi jurisdictional cross and trans border expatriate
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