I am a Canadian Citizen and a resident of California on TN status.
With the favorable exchange rate, I would like to purchase a pre-development property in Canada, as I intend to return by end of next year. Plus better to have the money sti in real estate.
How would this situation complicate my tax situation on either side of the border?
Would the situation be any different if I was to purchase a pre-built property as an investment property and rent it out. I know this would create property income, but is that that different from how the interest income is reportd?
On TN Status in USA, looking to buy property in Canada
Moderator: Mark T Serbinski CA CPA
well, if the property is not generating income, there is no taxes to pay on either side of the border.
If you buy a rental property, you are subject to 25% tax on net rental (remitted monthly) to CRA, plus taxable by IRS and Cali (IRS will credit you).
Yo uare probably better off going with your first option.
If you buy a rental property, you are subject to 25% tax on net rental (remitted monthly) to CRA, plus taxable by IRS and Cali (IRS will credit you).
Yo uare probably better off going with your first option.
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