PART II Capital Gains Tax when moving back into Canadian rental. -

I'm living in Vancouver, finally paid off the student debt but don't see myself getting into
the expensive Vancouver market. I do however like to ski and was thinking of buying an 
inexpensive trailer (25k Cdn) in Maple Falls Washington. 
 
However I'm not sure what other expensives I should expect given that it's in the US. 
I'm not trying to make this an investment with a high return, but I would like to do some 
handy work to it to increase the value. If I add about 10k worth of value, how would that 
affect my taxes in the long term?Thanks for the advice.
----------------------------------------------david ingram replies:One of my favourite weekends ever was in 1973 at the Chandelier (think it has a different name now) when marooned at SnowLine  because of the gas shortage when one could only buy gas on odd days if your licence plate ende dwith an odd number and even days when it was an even number.Strangely, it was that weekend 34 years ago that lets me answer you question now.The cabin I was staying in was not a rental but was built by the fellow who owned it.  When he was building it, buddies would come down and help him and one weekend, the INS raided the spot and deported a bunch of his friends for working in the US .He was fine building it because he owned it but no one else can hammer a nail, paint a board, install a sink, or carry a shingle if they are not either an owner or a legal US citizen or US resident with a green card.If your buddy is working and living inthe US with a TN, H1, O1, P1, L1 or any other visa but a green card, they cam NOT help you either.And, if you are intending to rent the trailer out 'EVER', 'you' can NOT hammer a nail, sweep the front steps or clean the toilet.Assuming you are buying this trailer on its own lot, when you go to sell, you will owe the US income tax on the profit.If it is your only pioece of real estate at that time, you will not owe Canada any tax because you can claim it as your personal residence if you have not bought another place.


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