This is a multi-part message in MIME format. ---------------------- multipart/alternative attachment QUESTION: HI-- I am a US citizen living and working in the US. I am considering = purchasing a rental property in Vancouver, BC and wondered about the tax = consequences--both in Canada and the US. Would I need to pay taxes on = the income in Canada or US? =20 Both - Canada first on a Section 216 return with an extra schedule T776 = - If any taxes were paid to Canada, you would claim a credit on your US = return by way7 of form 1116. After convewrting the Canadian figures to = US $$$, youy would have a small loss, not a profit. Would I be able to deduct mortgage payments and condo fees and = management company fees as a business expense?=20 You can deduct "mortgage INTEREST" and condo fees and management fees in = Canada and the US. If it was to be paid in Canada, would I only be taxed on the rental = income--not my personal US salary income. =20 Canada would not have a claim on your US income unless you were in = canada very ofteen on a continuos basis. Thank you! KXXXXXXXXXXXXXXx =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D david ingram replies: Before you rent it out, you need to fill out form NR-6 and have a = Canadian "Tax agent" who may or not be the rental agent. The NR-6 is available at: http://www.ccra-adrc.gc.ca/E/pbg/tf/nr6/nr6-00e.pdf This will result in the tax agent having to remit $25% of the net rent = to the Canadian Income Tax Department every month. Then by March 31st of the following year, your tax agent has to file = form NR-4 and Summary to report the rental income to the CRA and you. The flat form is at: http://www.cra-arc.gc.ca/E/pbg/tf/nr4_flat/nr4flat-03b.pdf The summary form is at=20 http://www.cra-arc.gc.ca/E/pbg/tf/nr4sum/nr4sum-fill-00b.pdf Then by June 30th, you have to file a Canadian Tax return under Section = 216(4) to report the rental income to Canada on form T776 http://www.cra-arc.gc.ca/E/pbg/tf/t776/t776-fill-01e.pdf You can read the T-1 Guide at = http://www.cra-arc.gc.ca/E/pub/tg/5000-g/5000-g-03e.pdf The T776 will give you a good idea of what is deductible -- It is = analogous to the US form 1040 with a schedule E. You can also go to www.centa.com and read the rental income seciton in = the Tax Guide - look around a bit. Your name has been added to our email list because of an enquiry we have = received, we may not answer your question but=20 another similar question will be as we lump them. You may find more answers at www.centa.com If the number of messages is too many for you or the US / Canada = Taxation and Immigration information is not of interest, simply reply = with a remove request. David Ingram of the CEN-TA REALTY Group US / Canada / Mexico tax and working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 (604) 980-0321 - Fax 913-9123 [email protected] www.centa.com www.david-ingram.com This from ask an income tax immigration planning and bankruptcy expert = consultant guru or preparer from www.centa.com or www.jurock.com or = www.featureweb.com. Canadian David Ingram deals daily with tax returns = dealing with expatriate: multi jurisdictional cross and trans border expatriate gambling refunds = for the United States, Canada, Mexico, Great Britain, the United = Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, = Indonesia, Egypt, Antarctica, Japan, China, New Zealand, France, = Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, = Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, = Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, = Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, = US, UK, GB, American and Canadian and Mexican and any of the 43 states = with state tax returns, etc. income tax wizard wizzard guru advisor advisors experts specialist = specialists consultants taxmen taxman tax woman planner planning=20 preparer of Alaska, Alabama, Arkansas, Arizona,=20 California Denver Colorado, Connecticut, =20 Delaware District of Columbia Miami Florida,=20 Garland Georgia, Honolulu Hawaii, Idaho, Illinois, Indiana Des Moines Iowa Kansas Kentucky,=20 Louisiana Bangor Maine Maryland =20 Boston, Massachusetts, Michigan, Minnesota, =20 Mississippi, Missouri, Montana, Nebraska, =20 Nevada, New Hampshire, New Jersey,=20 New Mexico,New York, North Carolina, =20 North Dakota, Ohio, Oklahoma, Oregon.=20 Paris, Rome, Sydney, Australia Hilton Pennsylvania, Rhode Island, Rockwall,=20 South Carolina, South Dakota, Tennessee, =20 Texas, Utah, Vermont, Virginia,=20 West Virginia, Wisconsin, Wyoming,=20 British Columbia, Alberta, Saskatchewan,=20 Manitoba, Ontario, Quebec City,=20 New Brunswick, Prince Edward Island,=20 Nova Scotia, Newfoundland, Yukon and=20 Northwest and Nunavit Territories, =20 Mount Vernon, Eumenclaw, Coos Bay=20 and Dallas Houston Rockwall Garland=20 Texas Taxman and Tax Guru and wizzard=20 wizard - David Ingram's US/Canada Services US/Canada/Mexico Tax Immigration & working Visa Specialists US / Canada Real Estate Specialists 4466 Prospect Road North Vancouver, BC, CANADA, V7N 3L7 Calls accepted from 10 AM to 10 PM 7 days a week Res (604) 980-3578 Cell (604) 657-8451 Bus (604) 980-0321=20 [email protected] www.centa.com 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 & = the author and any and all non-contractual duties are expressly denied. = All readers should obtain formal advice from a competent financial, or = real estate planner or advisor & appropriately qualified legal = practitioner, tax or immigration specialist in connection with personal = or business affairs such as at www.centa.com. If you forward this = message, this disclaimer must be included." ---------------------- multipart/alternative attachment An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/958eb8cb/attachment.htm ---------------------- multipart/alternative attachment--
Comments (0)
CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/UsCaWeekofMon20040614001211.html