purchasing property in Can

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Russ
Posts: 71
Joined: Wed Oct 27, 2004 12:09 pm

purchasing property in Can

Post by Russ »

In another question in this forum, I mentioned I have rental props. in Canada while a Can. non-resident / US resident (bought years ago when a CAN res / US non-res).

However, I'm considering buying a piece of land in the next couple of months while still a CAN non-res/ US res.

Let's say I buy one for $100,000K CDN on July 1/2005. If I then move back to CAN on Jan/1/2006 and become a CAN res / US non-resident, do I have to estimate the property value on Dec/31/2005 to determine any value while a non-resident?

Also, if I buy the property, I assume on title it'll have my name / address in the US and therefore, when I become a CAN resident / US non-resident later, do I have to change the title in some way?

Thx. again I'm not sure about buying while a US res / CAN non-res.

Russ
nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Because this is a piece of land, its use does not change when you return to canada, thus there is no need for a valuation on arrival, unless you intend to build your home before or soon after you move back.

The only times you need an evaluation on a Cdn property would be if:
(a) it was your principal residence when you left and you are keeping it, or
(B) you had the property and are, when entering canada, making it your principal residence.

I doubt that it will have any strings on the title.

If you do get a mortgage, expect to pay 10% more (eg. 5.5% instead of 5.0%) on interest to cover the IRS tax that the Cdn bank must withhold and pay.


<i>nelsona non grata</i>
Russ
Posts: 71
Joined: Wed Oct 27, 2004 12:09 pm

Post by Russ »

Thx. again Nelson.

Actually it'll be a cash deal so nice not to have to worry about the mortgage / tax issue on this one.

Russ
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