Question 1:My father is selling his farm in Canada and wants to give the money to my husband and myself who live in US permanently. What implications does this have on our US taxes? Do we have to claim the amount and if so, under what?
Question 2: If you own land in Canada and sell it, how does this affect your US taxes?
Thanks in advance
Selling land in Canada, how does it affect US taxes
Moderator: Mark T Serbinski CA CPA
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Lolapalola
- Posts: 16
- Joined: Sat Oct 27, 2012 4:13 pm
1. If the gift from any non-resident is of more than $100,000, it must be reported on form 3520, but there is absolutely no US tax for you on this gift.
2. If you are a US resident, then the sale must be reported in both US and Canada, and any cap gains tax paid. The US will credit Cdn tax towards the US tax.
2. If you are a US resident, then the sale must be reported in both US and Canada, and any cap gains tax paid. The US will credit Cdn tax towards the US tax.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best