Tips for Canada Snowbirds purchasing or selling property in the USA.
Access To Your Property
Think About The Property's Ease Of Access - For Yourself And For Your Potential Renters…
In order to maximize your usage and ease of enjoyment of your snowbird property in the USA, think about how easy it will be for you to access and, if you choose to sub rent, make sure you've thought about the property's ease of access from roadways to airports to rental cars to trains and boats if required. Properties that are easily accessed tend to have higher occupation rates, higher rental rates and better user experiences.
Rental Returns
Do Detailed Research And Then Project The Minimum Potential Returns - In Other Words, Be A Realist - Here's How…
What are other similar area properties renting for? How many weeks per year is the local rental market near capacity? How much will you require for upkeep of the property, maid service and supplies?
Taxes On Returns
Canadians Pay Tax On Rental Earnings. Here's How The IRS Explains Your Tax Burden ~ Aug. 2020…
If a Canadian resident receives rental income from real property located in the U.S., they are subject to a non-resident withholding tax of 30% of the gross rental income, which is required to be remitted to the Internal Revenue Service (IRS) by the tenant.
Capital Gains
Canadians Pay Capital Gains On US Property. Here's How That Works ~ July 26 2019…
As a Canadian resident, you're subject to income tax 'on your worldwide income' – so the sale of your U.S. property, and any gains or losses incurred, has to be reported in Canada as well as the U.S.A. Speak with a reputable accountant with international property knowledge if you require help.
Reporting
How Do I Report Sale Of My US Property On My Canadian Tax Return? ~ May 2020…
You must provide your IRS-stamped copy of Form 8282 to support the tax withheld. You will then file your Canadian tax return and report that capital gain on your return. The amount of taxes paid in the U.S. will be deducted as a foreign tax credit. The IRS requires the buyer of your property to act as its agent and collect and remit the withholding tax. U.S. title agents understand this requirement and will determine whether you’re a foreign seller in order to protect the buyer. The purchaser/title agent will remit the withholding tax will remit the withholding tax on or with Form 8288 – U.S. Withholding Tax Return for Dispositions by Foreign Persons of U.S. Real Property Interests.