Owning Real Estate in Vancouver as a US Citizen

Member since 2023 · 7 posts · 2 votes

Hello!

My parents have an apartment in Vancouver that they are debating whether to sell it or pass it onto their kids. With the recent tax law changes in capitol gains taxes in Canada and this property not being their primary residence. Does anyone have thoughts on what the best course of action might be from an investors' standpoint.

I currently manage a long term rental and working on a single family home fixer (will probably convert to rental in the future) in Cali. I'm excited about the potential of owning property outside the states, but don't know some of things I should consider versus owning real estate domestically.

Any info and help would be greatly appreciated. Thank you!

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Hai Loc

Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes

Quote from @Jackie Lin:

@Cedric Ferrell appreciate the response. Considering that my parents and I are not Canadian citizens it adds an additional wrinkle to things as they or I are not able to claim this as the primary residence and avoid the capitol gains tax... a lot to consider and think about. Thanks!

you need to dodge capital gains and foreign buyer tax.. you should consult a tax expert..

If I was in this situation I would just sell (not advice) and buy a cash flowing mobile home park in the midwest

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Cedric Ferrell
Member since 2018 · 15 posts · 1 vote
1y
@Jackie Lin
That’s a big decision, and with your experience in California rentals, you’re in a great position to weigh the options. Keeping the Vancouver property could provide strong rental income, long-term appreciation, and diversification, but it also comes with tax implications, foreign ownership rules, and management challenges. Selling now could simplify estate planning and lock in gains, especially with capital gains taxes in mind. Would your parents consider selling to you or your siblings at a favorable price instead of gifting it? That could help manage tax liabilities while keeping the property in the family. DM me, and I’ll point you in the right direction!
All the best!
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Jackie Lin
OP
Member since 2023 · 7 posts · 2 votes
1y
@Cedric Ferrell appreciate the response. Considering that my parents and I are not Canadian citizens it adds an additional wrinkle to things as they or I are not able to claim this as the primary residence and avoid the capitol gains tax... a lot to consider and think about. Thanks!
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Hai Loc
Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
1y
Quote from @Jackie Lin:

@Cedric Ferrell appreciate the response. Considering that my parents and I are not Canadian citizens it adds an additional wrinkle to things as they or I are not able to claim this as the primary residence and avoid the capitol gains tax... a lot to consider and think about. Thanks!

you need to dodge capital gains and foreign buyer tax.. you should consult a tax expert..
If I was in this situation I would just sell (not advice) and buy a cash flowing mobile home park in the midwest
1 Reply
Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
1y
Quote from @Jackie Lin:

Hello!
My parents have an apartment in Vancouver that they are debating whether to sell it or pass it onto their kids. With the recent tax law changes in capitol gains taxes in Canada and this property not being their primary residence. Does anyone have thoughts on what the best course of action might be from an investors' standpoint.
I currently manage a long term rental and working on a single family home fixer (will probably convert to rental in the future) in Cali. I'm excited about the potential of owning property outside the states, but don't know some of things I should consider versus owning real estate domestically.

Any info and help would be greatly appreciated. Thank you!

It all depends on what is going to give you guys a greater return in the long run and be better in time allocation. If you have the money and you can do something with it in California and you trust that the money will grow more there, then that's what I would do
[email protected]614-490-1163
Kerlous Tadres | Reafco Real Estate541 Reviews
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
1y
As Hai mentioned in BC there are a couple of extra things to factor in if your parents sell it to you-the capital gains, foreign buyer's tax AND the property transfer tax all apply in BC and the middle one is not cheap (an extra 15%). Add to that there is currently a ban on foreign buyers in Canada (only a few exceptions and as far as I know they all involve living here).
Capital gains taxes apparently used to be higher (before my time). The changes apparently haven't come into effect yet and as we have an election this year, who knows what will happen. Here's a link to the article that mentions the delay. I'd talk to a tax professional in Canada. If they sell, spring is a good time to do so in Vancouver. You will already know the rental rules, but you will need to refund the tenant their last month's rent if you are selling the property.
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