Buying house in the USA

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tyronen
Posts: 11
Joined: Fri Feb 11, 2005 8:22 pm

Buying house in the USA

Post by tyronen »

My wife and I (TN/TD holders) are considering buying a house in the USA. The hitch is that there is a good chance we will eventually be returning to Canada.

If we do that, we could either sell our US house or rent it out. If we rent out a US property while living in Canada, would we pay Canadian tax only, or both Canadian and US?

If we rented for a while and then decided to sell, would we pay capital gains just in Canada or in both countries? In the Canadian case, would the gains be calculated from the purchase date or the date of returning to Canada?
nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Your rental income would be taxable in both countries.

Your cap gains would also be taxable in both countries, with different rules in each country.

The basis in canada would be calculated on theday you return to canada, as with ALL investments.

<i>nelsona non grata... and non pro</i>
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