My first post. My apologies if I'm in the wrong forum, or if this topic has already been covered. I searched and found related posts, but none this specific.
I grew up in Canada and I've been a US citizen for many years -- remained single -- my father has passed away and Mom is aging.
My Canadian Mom asked if I would like to be added to her house title -- to avoid probating her house upon her demise. I would like to, but I do not know what implications I may face.
My question is, if I take ownership of a Canadian property while I continue to live and work in the US, will there be tax issues for me each year, or when I go to sell the Canadian house? Are these issues "so" large that I might prefer to simply inherit the proceeds instead of title? (I had the idea that I might spend some of my retirement time there in the future.)
I also maintain a Canadian Passport and may one day wish to return permanently to Canada -- it will be several years before this decision is made. I also own a US home. The Canadian property is valued around $150K Cdn., if this matters.
Should US Citizen seek ownership of Canadian Parent's home?
Moderator: Mark T Serbinski CA CPA
As long as she keeps the house, its value increases tax-free to everyone.
Once you own it (or some of it), you become liable for some capital gains between now and the time you sell, instead of only after she dies. It also becomes part of YOUR estate if you die, for US estate tax purposes.
Do not worry that owning this house will make you a resident or anything. You do not have sufficient ties in Canada for that.
So the question becomes "Are probate fees so onerous that one need worry about them at all?" I have no idea.
Once you own it (or some of it), you become liable for some capital gains between now and the time you sell, instead of only after she dies. It also becomes part of YOUR estate if you die, for US estate tax purposes.
Do not worry that owning this house will make you a resident or anything. You do not have sufficient ties in Canada for that.
So the question becomes "Are probate fees so onerous that one need worry about them at all?" I have no idea.
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