Selling foreign investment property

[Matthew Purvis]

Hello BP,

I am looking for advise.

I am in the process of listing my investment property in Canada for sale. I will be making a profit on it and I am looking to keep as much of the profit as possible. Of course the property will be sold in Canadian dollar and as of today the exchange rate is $1 US = $1.16 Canadian. So right off the bat I will be losing 16 cents on the dollar when I bring the money south of the boarder. I will also be paying Canadian taxes on the property when sold and filling Canadian taxes for 2021.

My question is how much will Uncle Sam want of the profit? Is there a way to not lose a bunch of money in taxes?

Thank you for the insight,

Matt

[Melanie Dupuis]

@Matthew Purvis Sounds like you need a cross boarder CPA. I am doing the opposite, Canadian investing in the states. Everything depends on how you were structured initially! For example the CRA does not recognize LLC's, and the IRS might not recognize your Canadian entities. You will definitely be taxed in Canada for the sale, the key here is to pay minimal taxes on the US side when you bring the money back home!