Living in USA while owning/mortgaging a home in canada

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kenny0202
Posts: 1
Joined: Mon Sep 12, 2022 2:40 am

Living in USA while owning/mortgaging a home in canada

Post by kenny0202 »

House is fully bought out many years ago by grandparents and ownership was transferred to my uncle.

House ownership is currently under my uncle and the plan is to transfer ownership to my name or a split between myself and my mom.

House will be split 3-way between uncle, aunt and my family on the monetary value of the home. My mom suggested that we pay out my uncle and aunt and take up a mortgage to pay them off so that house becomes mine and my family. My mom doesn't have enough income to have the mortgage under her name, so the plan is for me to mortgage it which I am approved enough to pay out both.

Currently living and working in USA under a TN visa, however, in the upcoming months I will likely be mortgaging the home in Vancouver from the above scenario.
Note, I am not paying any Canadian taxes as I have declared my non-residency and exit.

Additionally, potential plan is that my mom will be collecting rent from empty rooms/floors and I was told that in this situation if the house is under my name, she is acting as an agent and additional tax on my side is withheld and I likely need to file Canadian taxes again. Is this true?
Note that the rent portion I won't be taking any of it as my mom will take 100% of it, so I would assume she would be reporting that as income for her tax return.

Is there a difference if the name of the house is split between with my mom? Will it help with reducing tax implications on my part, if any?

Will there be any sort of tax or tax reporting implications with a mortgage in Canada under my name? Or a property under my name or if it is split between me and my mom?

From the CRA tax side, will there be any sort of tax implication of property ownership transfer?

From the IRS tax side, will there be any sort of tax implication of property ownership transfer?
- I read that there might be some sort of tax that will need to be paid, but not sure if my situation is different.

The transfer comes from moving my uncle as the current owner to my name as the new owner.

Much Appreciated!
nelsona
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Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Living in USA while owning/mortgaging a home in canada

Post by nelsona »

Any income (or loss) generated by the property must be split between the owners, and reported both in canada and US.

In Canada rental income is reported by a non-resident on a 216 return, and tax must be withheld and remitted monthly (your mother can do this).

Although you getting some of this property is a gift, there would be no tax in either country on this, but if the value is more than US$100K, you would need to report the gift to IRS on form 3520.

Not sure why you are bothering to do this.... why not just have it in her name, and inherit it later. Who is giving you this \advice?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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