Cottage in Canada for US residents

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popeye
Posts: 2
Joined: Thu Jul 16, 2020 12:20 pm

Cottage in Canada for US residents

Post by popeye » Thu Jul 16, 2020 12:31 pm

Hi there! Wife and I are considering purchasing a condo in Quebec. We're both US residents/citizens while my wife is also a Canadian citizen.
We're not planning to rent out the unit now. Would we need to file Canadian taxes or have any other tax obligations other than paying property and welcome taxes, maintenance, etc? We plan to remain US residents for the foreseeable future, but may move later (5+ year from now).
Also, we'd need to transfer a large sum of money from the US to Canada to purchase the condo. Anything we need to look out for on that? I know if we have a bank account with $10k+ USD that there are tax filing requirements for the US, but that's where my knowledge ends!
Thanks for any help you can provide.

nelsona
Posts: 16455
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cottage in Canada for US residents

Post by nelsona » Fri Jul 17, 2020 6:37 pm

You would need to file taxes in Canada (not quebec) and pay 25% on the rental income (and have monthly tax withheld and remitted to CRA).
CRA has information on non-resident rental income.

You would also need to report the income in US, and depreciation, with credit given for any Cdn tax.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

popeye
Posts: 2
Joined: Thu Jul 16, 2020 12:20 pm

Re: Cottage in Canada for US residents

Post by popeye » Fri Jul 17, 2020 8:00 pm

Thanks - but not planning to rent it. It would just be a second home that we would spend a little bit of time in every year. Also, in case it makes a difference, we plan to pay for it in cash and won’t have a mortgage. I assume that changes the answer a bit?

Thanks again!

nelsona
Posts: 16455
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Cottage in Canada for US residents

Post by nelsona » Mon Jul 20, 2020 12:26 pm

Sorry, missed the "not" trenting. You would only need to report when you sell.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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