My husband and I are Canadian and are close to purchasing our first investment property in the US. I've recently been told that the taxes for Canadians is higher.
Residential Real Estate Agent · Clermont, surrounding areas, FL · Member since 2011 · 12 posts · 2 votes
15y
Hi, if you are talking about property taxes, then those may be higher if your investment property is not your primary residence. In Florida, if the property is not your homestead, then you miss out on a homestead exemption deduction, therefore your taxes will be higher.
If you are talking about Canadian taxes.. I just sold 4 homes to Canadian buyers recently in Florida and they said that they have already paid tax on their money in Canada, and they don't need to pay tax on it again, after purchasing a US home. I would talk to your attorney, accountant, or financial advisor for the best answer.
Residential Real Estate Agent · Clermont, surrounding areas, FL · Member since 2011 · 12 posts · 2 votes
15y
Hi, if you are talking about property taxes, then those may be higher if your investment property is not your primary residence. In Florida, if the property is not your homestead, then you miss out on a homestead exemption deduction, therefore your taxes will be higher.
If you are talking about Canadian taxes.. I just sold 4 homes to Canadian buyers recently in Florida and they said that they have already paid tax on their money in Canada, and they don't need to pay tax on it again, after purchasing a US home. I would talk to your attorney, accountant, or financial advisor for the best answer.
Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
15y
Canadians definitely pay higher taxes. The tax treaty between the US and Canada allows for some special treatment. Like Mike said though you are allowed a foreign tax credit on your Canadian tax return.
Are you buying property personally or inside an LLC or corporate entity?
Real Estate Investor · Bellingham, WA · Member since 2008 · 407 posts · 90 votes
15y
Originally posted by r ruben:
buying personally.
I'm going to speak with an accountant that specializes in cross border real estate investing. Does anyone know any?
I have used Keats Connelly in the past. They are based out of Calgary but have local seminars in Vancouver and Toronto on occasion. http://http://www.keatsconnelly.com/
SFR Investor · calgary, Alberta · Member since 2012 · 6 posts · 1 vote
13y
What you pay in taxes is totally dependent on how you've structured your real estate business. Whether you are buying in your personal name, an LLC (which is not recognized by C.R.A.), a C-Corp, or one of numerous types of partnerships, you will create different tax implications for yourself.
In addition you can't use things such as the 1031 exchange (also not recognized by C.R.A.) unless you are structured properly.
If you need any help feel free to contact me and I can put you in touch with various people that can help you to be strategic in your investing.
Mike Wolf
http://MikeWolfMastery.com
403-399-3464 Calgary
702-812-9695 U.S.
888-265-0662 Toll Free
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
R Ruben,
Canada's tax rates are in fact higher than the US. You will be required to obtain a Individual Taxpayer Identification Number unless you have a US SSN. You will have to file a US tax return and then you will then pay any tax if applicable on the income. You will then include this income on your Canadian T-1. You will also receive a credit for any tax paid to the US and you will pay the difference between the US and Canadian rate.