Do Canadians have to pay tax in the U.S. when selling U.S. real estate?

03/02/2020
Question:

We are going to be putting our Florida condo on the market because my husband is no longer able to travel. Do we have to pay tax in the U.S. when we sell our condo?

Answer:

Canadians who sell U.S. real estate will generally have to pay tax in the United States when they sell their property.

You may also be subject to a withholding tax of up to 15% of the sale price, unless you are able to secure an exemption well in advance of the sale.

You’ll also need to report the sale and pay tax on any net gain in Canada. However, this amount can usually be reduced by claiming a tax credit under the U.S. Canada Income Tax Treaty.

It is always advisable to seek the advice of cross border tax professionals on both sides of the border well in advance of any sale of U.S. real estate to plan appropriately and minimize your tax bill.

You can learn more about tax implications for Canadians who own U.S. real estate here.

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