US Income tax rate for Canadaian selling property in US

ff_farhad · Post by **ff_farhad** » Tue May 17, 2016 9:14 pm

Hi , I am Canadian interested to flip property in US under individual name. Flip will last less than a year. What is the income tax rate in US when I sell property and have some profit?

Does anyone has experience with Flipping property in US ?

nelsona · Post by **nelsona** » Tue May 17, 2016 11:02 pm

You will be taxed on a graduated scale, since this is short-term cap gains, It will be a little less than what you will be taxed in Canada, so you don't really have to worry about that rate.

Remember that as a non-US resident or citizen, you are absolutely not permitted to do any work on these properties, which will no doubt eat into your profit margins.

ff_farhad · Post by **ff_farhad** » Tue May 17, 2016 11:14 pm

Thanks for reply.
Since I buy and sell under individual name , do you know if I can claim all expenses associated with business trip from Canada to US and accommodation/food etc to buy rehab and sell property?

I heard my tax rate will be 30% but might be wrong, reason I would need this rate to check if it make sense to do this type of investing.

Thanks

nelsona · Post by **nelsona** » Wed May 18, 2016 9:16 am

the rules for business expenses are about the same in both countries, so you will be paying the Cdn rate on this. of course, these expenses will be eating into your profits.

And you will need to tell the border officer what you are doing down in the states, and he will have to let you in.

As long as YOU are not doing the rehabbing, which would be illegal. No sweat equity for you.

ND · Post by ND » Thu May 19, 2016 4:28 pm

You will find https://www.irs.gov/publications/p519/c ... 1000222331 very useful as well as https://www.irs.gov/pub/irs-pdf/p463.pdf