Canadian's) selling Florida USA real estate US Canada

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
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