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Canadians purchase real estate in the United States for many reasons. Whatever the reason, Canadians should be aware of the complex nature of U.S. income tax rules related to U.S. property ownership and the tax compliance obligations associated with owning real estate in the U.S.
This article discusses the following three ways that Canadian owners of U.S. property can be subject to the various U.S. tax regimes:
- Collecting rental income and the options available
- Selling U.S. real estate and the Foreign Investment in Real Property Tax Act
- U.S. Estate and Gift Taxes/Canadian Deemed Disposition Rules
Ways to engage your clients in this conversation:
Here is suggested language to share this article electronically with your clients and prospects, to prompt conversations regarding tax compliance implications to owning U.S. real estate:
Canadians purchase real estate in the United States for a variety of reasons. Whatever the reason, Canadians should be aware of the various U.S. income tax and compliance rules related to U.S. property ownership. The attached article provides a brief summary of the various U.S. tax rules and reporting that may apply to owning U.S. property.
As always, your AWPG is available to discuss these planning considerations and answer any questions.
