QUESTION: Hi, We are canadian resident and have a home in Florida since 2003. We would like to sell it but we're not sure about capital gains and all those things. What do we have to pay if we sell the house and do we have to make tax report to US and Canada ? Thank you. ------------------------------------------------ david ingram replies: You will have to file a 1040NR and pay US tax first on the gain. Pay attention to Form 6251 because non-residents have usually had to pay alternative minim um tax on US real estate sales. Then you convert the figures to Canadian dollars and calculate any gain in Canada. Because the US dollar has fallen 30+%, there is a strong likelihood that there will be no Canadian profit. If there is, you will report 50% of the net profit on lines 127 and 433. report the tax paid to the US on line 431 - you will find lines 431 and 433 on schedule 1 of the T1. It is not likely there will be any foreign tax left over. If there us, you will claim it on the equivalent lines of thee provincial form 428 by calculating the Provincial Foreign Tax credit on schedule T2036 first. If you need help, I would be glad to prepare the forms for you. I used to have 14 offices in Florida. david ingram David Ingram's US/Canada Services US / Canada / Mexico tax, Immigration and working Visa Specialists US / Canada Real Estate Specialists Home office at: 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Cell (604) 657-8451 - (604) 980-0321 Fax (604) 980-0325 Calls welcomed from 10 AM to 10 PM 7 days a week (please do not fax or phone outside of those hours as this is a home office) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://www.david-ingram.com/> Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." 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