Canadians need to educate themselves about what is involved with owning real estate in another country, such as the following:
1. Income taxes - how much, when, and how paid?
2. Non resident taxes - do they apply? If so, is there a way to avoid?
3. Decide how to best own the property - ways to own and take title
4. Learn what sort of non-tax reporting is required by the United State and Canada
5. Locate an experienced cross border professional
6. If necessary, have an attorney establish the proper US business entity to hold the property
7. Obtain Employer Identification Number and/or Individual Taxpayer Identification Numner as appropriate
8. Locate an experienced realtor who also has experience working with Canadians
9. If needed identify lending sources
10. When selling a property that exceeds $300,000 look into the necessity of filing Application of Witholding Certificate for Dispositions by Foreign Persons of the US Real Property Interests to reduce the withholding tax.
11. Consult with an accountant and tax attorney for other possible tax forms to be filed on the both the state and federal levels.
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
