Dual USC/Canadian citizen residing in Canada, commuting to work in US, married to Canadian citizen. Considering acquistion of Canadian vacation property. No plans for rental income from it.
If owned jointly with Canadian spouse, can I deduct property tax and interest on funds borrowed to purchase the property on my US Return?
At present my Canadian tax owing is a little less than my US tax, so there might be some value in reducing US tax payable.
If and when it's sold, would the capital gains tax liabilities to Canada and US offset efficiently?
Any ( tax ) reason I should consider having one spouse or the other own the property vs joint tenancy?
Canadian vacation property
Moderator: Mark T Serbinski CA CPA
The real estate tax and mortgae interst on a 'second home' is tax deductible in US.
The cap gains tax will offset nicely. The reverse, buying a US cottage while living in canada does not afford such good tax merging, since canada accepts only half of the US tax for credit.
Tip:, for US tax purposes, if you move from one house to the cottage after selling ,and then sell cottage 2 years later, you will have no US cap gains.
The cap gains tax will offset nicely. The reverse, buying a US cottage while living in canada does not afford such good tax merging, since canada accepts only half of the US tax for credit.
Tip:, for US tax purposes, if you move from one house to the cottage after selling ,and then sell cottage 2 years later, you will have no US cap gains.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best