Investing in U.S. Real Estate Property
Many Canadians are investing in U.S. real estate directly, through Canadian corporations, and/or through partnerships. The U.S. and cross-border tax ramifications of these investments are often not considered when making the initial decision to invest.
If the U.S. property is rented, a few of the issues that must be addressed include:
When the property is disposed of (whether or not this property was rented) the U.S. requires that a tax return be filed to report the capital gain associated with the sale. Issues that arise and need to be addressed are as follows: