Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Tax Implications to Canadian resident buying a Condo in the USA ?
Position: General comment - Pamphlet "Canadian Residents Going Down South"
Reasons: General request
XXXXXXXXXX C.Tremblay
990728
April 28, 1999
Dear XXXXXXXXXX:
Re: Buying a condominium in the USA
This is in reply to your facsimile of March 16, 1999, wherein you state that you are considering buying a condo in the United States (“USA”)for holiday purposes. You wish to know if there are any income and estate taxes implications
Written confirmation of the tax implications inherent in particular transactions are given by this Directorate only where the transactions are proposed and are the subject matter of an advance income tax ruling, submitted in the manner set out in Information Circular 70-6R3. The following comments are therefore, of a general nature only, and are not binding on the Department.
Generally, there are no annual income tax consequences from owning property that is used for personal use or enjoyment in the USA. However, if, for example, the vacation property were rented during the year, the resulting profit, if any, would need to be reported in that year. Further, when a property located anywhere in the world is disposed of, including a deemed disposal on death, a Canadian resident is subject to income tax on the resulting capital gain.
We suggest that you obtain the tax pamphlet Canadian Residents Going Down South which gives information about the U.S. tax laws and certain Revenue Canada requirements that may affect you. This pamphlet is available at your local taxation services office and on the internet at http://www.rc.gc.ca.(Frequently Requested Publications).
We caution that our comments are general in nature and are not advance income tax rulings.
We trust our comments will be of assistance to you.
Yours truly,
J. F. Oulton, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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