US Cross-Border Tax Blog

Published by W.L. Dueck LLP

Posts filed under ‘Canadian Real Property’

Steven Flynn

Non-residents Selling Canadian Real Property

Monday May 1st is generally the filing tax deadline in Canada for individuals for the 2016 year[1].  It is also 8 days away from a provincial election in British Columbia.  One of the many issues politicians face in urban centers in BC is housing, both high prices and low availability.  Some politicians have suggested that the BC government take measures to fight tax cheats who purchase and sell property in BC without paying income taxes[2]. This includes non-residents selling Canadian… Read More

Emily Yu

US Federal Income Tax – Gains on Sale of your Canadian Home Part 2

When an individual moves from Canada to the US, he must decide whether to keep or to sell his former home in Canada. Depending on the decision, it may result in different income tax or reporting implications in Canada and the US. When an individual ceases to be a resident of Canada, he is deemed to have sold his worldwide assets (with some exceptions) and is subject to Canadian tax on any accrued gains in the year he emigrates from… Read More


Repaying your Canadian-dollar mortgage? Don’t be surprised by a US tax bill.

The ownership of real property is often made possible with mortgage and other debt financing.  Such mortgage financing offers a US taxpayer the ability to deduct for income tax purposes the interest paid, subject to some limitations. The repayment of the mortgage would not normally be expected to create an income tax liability.  However, for a US citizen or resident repaying a non US-currency denominated debt or mortgage during a period of a strengthening US dollar vis-à-vis the currency of… Read More


US Gift Tax Exposure on Joint Ownership of Property

The most common way spouses hold property in Canada is joint tenancy with right of survivorship. Joint ownership provides each joint tenant an undivided interest in the property and when one spouse dies, the property immediately passes to the surviving spouse without probate. In the case where one spouse is a US citizen and the other is not, care should be exercised when creating or terminating joint tenancy as certain transactions may trigger US federal gift tax for the unsuspecting… Read More


US Federal Income Tax – Gains on Sale of your Home Part 1

Generally, Canadians living in Canada are not subject to tax on gains from the sale of their principal residence. However, for a Canadian resident who is also a US citizen or resident (including permanent resident or “green-card” holder and those meeting the “substantial presence” test), the same capital gain may be taxable on his or her US income tax return. Under US Federal tax law, an individual may exclude from income up to US$250,000 of gain from the disposition of… Read More