Whenever a Canadian collects a fee for us of property they own in the United States,even if it's only one day, the Canadian has rental income. Any rental income received by Canadians on US owned property is taxable in both the United States and in Canada. Any tax paid in the US is used as a credit against the Canadian tax.
Rental income must be reported in the US ( where it was earned) and in Canada ( where the Candian has their residency and pay taxes on a world wide basis.)
Also, it is a good idea to check with both Canadian and US accountants and tax attorneys for the exact procedure and amount and timeline to file and pay the taxes.
LORI BOWERS
http://www.desertareahousingmarket.com
The Lori Bowers Group
A boutique Real Estate Office, with a full service team to serve all your Real Estate Needs
La Quinta, Palm Desert, Indio, Rancho Mirage, Coachella , Indian Wells and the surrounding Palm Springs Area.
78065 Main St., Suite 107
Old Town La Quinta
La Quinta, CA 92253
Phone: (760)777-8788 • Fax: (760)771-5355
