Hi:
I have some questions for you regarding a tax situation. If you can kindly throw some light on this subject or in case if you
are not familiar with the subject then point me to someone, I would really appreciate it.
I am a citizen of India living n the U.S. I think (not sure yet) that in about 9 - 12 months I would be moving to Canada as a
permanent resident. But at this time I want to invest in real estate in United States by buying a single family home and
putting it on rent.I want to understand what would be my tax situation for following:
1. Tax on rent in the year that I leave U.S.
2. Tax on rent in the years after that.
I am considering the two distinctly because in case 1 I would be filing income tax return in U.S anyhow because I was working
here.
3. Tax when selling the property in case I sell it in the year that I leave U.S?
4. Tax when selling the propoerty in any year after that?
5. Do I get a tax deduction in Canada on the interest part of the mortgage deduction for my property in U.S? Or can I deduct
that in the U.S tax return? In the latter case if the interest is higher than the rent, what to do?
Also is it useful/advisable or necessary to have an agent present in U.S after I move out of here?
I appreciate your time and look forward to your response.
Based on your intial advice I would be more than happy to pay for your services and ongoing help in cross border tax matters
and tax filings.
regards,
/CJ
Cross Border Tax Advice
Moderator: Mark T Serbinski CA CPA