Canadian investing in US forecloures
Not sure if this is the right forum category for this question...
I am in US (North Carolina) and trying to help a friend who is a Canadian citizen to invest in foreclosures in North Carolina. Most likely his plan is to buy, fix, sell or (rent and sell). Does my friend need a tax identification number in US to do this? How do other Canadians (for that matter non - US citizens) buy sell properties in US? Appreciate if anyone has some insight into this..
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Yes, a Canadian who earn rental income or real estate capital gains in the US will need an ITIN, and will need to file US tax returns. 1040NR returns. Generally, if they pay tax in the US they can claim that tax back on Foreign Tax Credit forms on their Canadian tax returns in order to avoid double taxation. Personal tax situation can affect how well that works. I.e. the devil is in the details.