Real estate taxation in US and Canada - Ask a

Dear Sir/Madam,
I am a landed immigrant of Canada and am working currently in the US with
L-1 visa.  I would like to purchase a house as the first time buyer in
Canada. I have questions below:
1). Can I deduct the mortgage interests and the property tax of my Canadian
house from my US income?
2). Will my mortgage and the purchased house in Canada be considered a
strong tie to Canada so that I have to prepare tax returns for both Canada
and the US?
3). Can I borrow the mortgage under my name but entile the other person (for
example my parents) as the owner of the house?
4). If the 3) is true, how can my parents transfer the house to my
possession later on without any tax liability?
Best regards,
david ingram replies:
1.	yes
2.	If it is empty, the CRA will look at you and may try and tax you on your
US income.  If it is rented, you will have to file a Canadian rental return
called a 216(4)
3,	Yes - have them hold it in trust
4.	if held in trust, it will just transfer.  However, if it increases in
value while you are a non-resident, the increased value is taxable when you
move in unless you file an election under 45(3).
There is still a tax owing but you do not have to pay it until you sell it.
Glad to look after your returns if you are having trouble finding a US
Canadian consultant/preparer where you are.
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  host a LIVE talk show called "ITS YOUR
Those outside of the Lower Mainland will be able to listen on the internet
at <>
Local calls are taken at (604) 280-0600 and Long Distance calls are taken at
1( 866) 778-0600
Callers to the show are invited to attend free seminars on financial
planning with such specialities as deductible mortgage interest. They are
held at Fred Snyder's Office at 1764 West 7th in Vancouver - (604) 731-8900
for more information.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 Fax (604) 980-0325
Email to taxman at <mailto:taxman at> <>
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