Investing in Property in the US – ask your questions and watch for the answers…

Do I have to file a US tax return?

Only if you want to claim your rental business and claim expenses to offset your rental income.  Be wary that you must take depreciation in the US whereas in Canada it is optional.

Is there withholding tax on rental income?

You can elect to have a standard 30% withholding tax taken from your tenant’s rent and remitted right to the IRS.  Then you are generally not required to file US tax return as a non-resident alien.

Do I have to pay capital gains tax in the US and Canada?

The capital gains tax rate depends on the length of time you hold the real property in the US.  Also be careful about tax on the recaptured depreciation you were forced to take.

How long can I be in the US without having to file a US tax return?

Are there any forms I need to file to the IRS?

What is US inheritance tax and how could it impact me?

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