what taxes would US citizens owning canadian income property be liable for?

In Property Management - Asked by jw b. - Jan 7, 2011
Report Abuse
Answer this Question

Answer(s)

Hassan F.
Owner/Investor
Richmond, BC

I am Canadian owning properties in US and know that part much more and I was just surprised that US people are looking at the cold North for investment. I guess everyone thinks grass is greener on the other side! Most of Canadian are investing in US real state since Canadian Currency is very strong (on par with USD) and most of the Canada is more expensive than US (which does not make sense either). Additionally, in here getting a decent income property that pays more than 4% CAP is very much impossible.
Anyways, if you own income property in Canada, you would pay income tax in Canada (and Canadian Province) and remainder of the tax (if any) you would pay in US. Generally real state income tax in Canada is considered as passive income so it is taxed at the highest bracket of about 40% (after expenses).

Jan 7, 2011
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question