With the US dollar buying you $1.30 Canadian right now, I have been thinking a lot about buying a piece of Canadian real estate to diversify my portfolio, and as a hedge against the US dollar falling again in the future. My wife and I have been vacationing a lot in BC, and enjoy the scenery + that 30% discount on everything, thanks to a strong dollar. Even if we don't turn a profit, I wouldn't mind just having a second home, or condo as a get-away.
Are there any Americans here who have done this, and do you have any tips to share?
What I think I know so far:
-Hakrjak
Are there any Americans here who have done this, and do you have any tips to share?
What I think I know so far:
- American's can own Canadian real estate without any special taxes, penalties, licenses, etc
- If you rent your Canadian real estate, you must file a Canadian tax return (And possibly claim a foreign tax credit on your IRS tax forms)
- If you're using Canadian real estate as a second/vacation home, you can write off mortgage interest on your IRS tax return.
- When selling your real estate, if there is a capital gain, it looks like the Canadian government keeps 50% of the gain?
- Certain major cities in Canada such as Vancouver seem to be in a real estate "Bubble" right now, so picking a city carefully is important.
-Hakrjak
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