Rental income difference between Canada and the USA -
My question is: Applicable to both US and Canada QUESTION: Is there a difference between taxes on rental income in Canada and the US? >From what I understand, you get taxed less with rental income than with earned income in the States. Is this correct?. If so, does the same thing apply to Canada? Thanks. --------------------------------------------------------------------------- david ingram replies: Both the US and Canada tax rental income at ordinary tax rates. There is no special tax rate in either country. The specific difference is that in the US, you are required to calculate depreciation and use it even if it creates a loss on the income tax return. In Canada, although there were specific exceptions from what is known as the MURB program, no new purchaser is allowed to claim depreciation to create a loss on the tax return. Therefore, when we do a dual country return (our specialty), we will often have a rental property creating a $1,000 or more refund in the US while remaining revenue neutral in Canada. Otherwise, a $10,000 rental profit (after depreciation) would be taxed the same as $10,000 of earned income in the US or in Canada. Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Dundee Wealth Management and I, David Ingram will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Local calls are taken at (604) 280-0600 and Long Distance calls are taken at 1( 866) 778-0600 I do not know how far the LD line reaches. ========================================= Ask a cross-border International real estate rental mutual funds immigration non-resident income tax expert - David Ingram 's CE-NTA Services in North Vancouver BC Canada on It's Your Money CKBD AM600 Fred Snyder's Radio Show This from "ask an income tax and immigration expert" from www.centa.com <http://www.centa.com/> or www.jurock.com <http://www.jurock.com/> or www.featureweb.com <http://www.featureweb.com/> . 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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 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." Be ALERT, the world needs more "lerts" ============================== --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.801 / Virus Database: 544 - Release Date: 11/24/04 --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.801 / Virus Database: 544 - Release Date: 11/24/04
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