Acquiring a property in the U.S.

[wmartin]

I’m a Canadian citizen with no present intentions of relocating to the U.S..

Please fill me in on the tax ramifications of purchasing a property in the U.S.? This U.S. property would not be rented, or leased, and simply be for my own added comfort, during my frequent ventures to New York.


Thanks in advance.

[Carson]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by wmartin</i>

I’m a Canadian citizen with no present intentions of relocating to the U.S..

Please fill me in on the tax ramifications of purchasing a property in the U.S.? This U.S. property would not be rented, or leased, and simply be for my own added comfort, during my frequent ventures to New York.

Thanks in advance.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Federally, you likely have no issues depending on the type and source of your income. You will have to manage your days in the US so that you're not considered resident under the substantial residence test.

For NY State residency issues, check out pages 7 to 10 in the following NY tax publication:

http://www.tax.state.ny.us/pdf/2004/inc/it203i_2004.pdf

Any capital gain on the sale of the US property will be taxable in the US/NY, as well as in Canada. You'll get foreign tax credits in Canada for US tax on the gain.



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Regards,

Carson Hirner