Dual citizen, Canadian home. Started as a rental & USA resident, ends as principal residence as a Canadian resident.
Moderator: Mark T Serbinski CA CPA
Re: Dual citizen, Canadian home. Started as a rental & USA resident, ends as principal residence as a Canadian resident.
EDIT: I wrote "Say a dual citizen purchases rental as a US resident, rents it and sell it as a resident" but it should be "Say a dual citizen purchases rental as a US resident, rents it and sell it as a US resident"....so he is a US resident through out.
Re: Dual citizen, Canadian home. Started as a rental & USA resident, ends as principal residence as a Canadian resident.
Gilgamesh wrote:
> Ontario’s Non-Resident Speculation Tax of 15% does not apply to Canadian
> citizens, non-residents right? So, I could buy a property as a US resident
> without incurring this tax.
Found the answer, so thought I’ll post it
The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.
> Ontario’s Non-Resident Speculation Tax of 15% does not apply to Canadian
> citizens, non-residents right? So, I could buy a property as a US resident
> without incurring this tax.
Found the answer, so thought I’ll post it
The NRST is a 15 per cent tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region (GGH) by individuals who are not citizens or permanent residents of Canada or by foreign corporations (foreign entities) and taxable trustees.
Re: Dual citizen, Canadian home. Started as a rental & USA resident, ends as principal residence as a Canadian resident.
Also, this...
U.S. Citizens Selling Canadian Property
Sale of Canadian Real Estate: Capital gains realized by a US person on the sale of any Canadian real property interest, regardless if it has been rented, will attract Canadian and US tax. One-half of capital gains are subject to Canadian tax for all investors. IRS forms should be filed to claim a foreign tax credit for the Canadian tax. CRA Information Circular IC 72-17R6 outlines the procedures concerning the disposition of Canadian real estate held by non-residents of Canada. Section 116 of the ITA prescribes a prepayment of 25% on the estimated capital gain on land and building (excluding selling expenses). There is a 50% withholding on recapture of CCA.
Final Tax Liability: One-half of capital gains net of selling costs are subject to tax. For individuals, the maximum rate on a capital gain is approximately 21.46% including the 48% non-resident surtax.
U.S. Citizens Selling Canadian Property
Sale of Canadian Real Estate: Capital gains realized by a US person on the sale of any Canadian real property interest, regardless if it has been rented, will attract Canadian and US tax. One-half of capital gains are subject to Canadian tax for all investors. IRS forms should be filed to claim a foreign tax credit for the Canadian tax. CRA Information Circular IC 72-17R6 outlines the procedures concerning the disposition of Canadian real estate held by non-residents of Canada. Section 116 of the ITA prescribes a prepayment of 25% on the estimated capital gain on land and building (excluding selling expenses). There is a 50% withholding on recapture of CCA.
Final Tax Liability: One-half of capital gains net of selling costs are subject to tax. For individuals, the maximum rate on a capital gain is approximately 21.46% including the 48% non-resident surtax.