Buying a home in U.S. as a Canadian non-resident

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optism
Posts: 21
Joined: Thu Mar 10, 2016 5:44 pm

Buying a home in U.S. as a Canadian non-resident

Post by optism »

Hi all,

I just moved to Colorado permanently on a TN Visa and it appears I will be taxed in 2017 as a non-resident alien due to failing the substantial presence test. Come 2018, I will be considered a resident alien. I wanted to purchase a home in 2017 and am wondering if I will face unforeseen difficulties or tax penalties as a non-resident alien. Can anyone advise? Should I wait until 2018 before purchasing a home?

Thanks in advance for reading,

Mike
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

First, you can chhoes to file as a full year resident for IRS in the year you move. many find this advantageous (especially if married). Your Colorado return would still be part year, and your Cdn returns would still be as a departing resident (emigrant) with departure tax etc.

as to buying a house in US there is absolutely no consequence of you being considered non-resident at the time of purchase. The only hardship you face is *perhaps* establishing credit, which would be the case regardless of your tax status, simply because you are new to US, and don't have agreen card or credit history.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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