My question is: Applicable to both US and Canada
QUESTION: Hello David
I read some answers that seem to be related to
my situation, but I would like to make an effort at
clarification, in any event.
I am one of those silly Canadians who went
ahead and filled out one of those declarations
stating I have no ties with Canada. I wish I had
known your view of this before! Anyhow, I have
relatively long term plans here in Japan and I
would like to start investing in some real estate
back home, specifically rental income. Is it your
opinion that this is generally a bad idea, no matter
what kind of safeguards I take? It sounds like you
think the government could come after me, not
matter what I do.
Any extra advice would be very much
appreciated.
GXXXXXx
---------------------------------------------------------
david ingram replies.
Japan has an income tax treaty with Canada. Article IV of the treaty
determines where you will be taxable on WORLD INCOME. You are always
taxable in the country where you earn the income unless it is exempted by
treaty. An example of exempt income would be a Canadian who earns less than
$10,000 in the US or vice-versa. The US/Canada tax trreaty exempts the
taxation in the source country if the person is in the country less than 183
days.
Therefore, as a resident of Japan, you can buy property in Canada and it
does not make you taxalbe if it is rented out to strangers for period's of a
year or more.
On the oher hand, if you bought a downtown condo in vancouver and left it
empty for your use for two months of the year when you come back to Canada,
Canada would have every right to tax you.
Go to www.centa.com and read the centre of US/Canada taxation for some
sample cases involving Libya, Saudi Arabia and the USA.
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 913-9133 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or
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Be ALERT, the world needs more "lerts"
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