Vacation homes in AZ as a Canadian
Tax implications for Canadians buying Arizona Real Estate
The most common question I get from prospective vacation home buyers from Canada is "what are the tax implications of buying in Arizona?" This video discusses one of those aspects - the long term capital gain.
Simply put, the net profit from the sale of any real estate owned by a foreign national is taxable as a long term capital gain. At this time the LTCG rate is 15%. So, if there was a net profit of $100K from a sale, the tax liability to the IRS would be $15K. Many people are concerned about whether they will have to pay taxes to bothe the US (IRS) and Canada (CRA). The Tax treaty of 1980 eliminates double taxation for most people. But, if the tax due in Canada is higher than what is owed in the US, the amount paid in the US is credited to the amount due in Canada. To be sure, you should always consult your accountant or tax professional for information on your personal situation. The info supplied here is general and will apply to most people, but your situation might vary.
Buying your vacation home in Scottsdale, Phoenix, Mesa or any of the other wonderful cities in the Phoenix metro area is pretty easy. For more info on tax questions concerning a Phoenix are real estate purchase, please check out http://www.weareazrealestate.com/TaxQuestionsregardingrealestatepurchasesinAZ.ubr
Adam Tarr PC
Citywide Real Estate
Phoenix, AZ
480-236-7374
adam@WeAreAZRealEstate.com
The most common question I get from prospective vacation home buyers from Canada is "what are the tax implications of buying in Arizona?" This video discusses one of those aspects - the long term capital gain.
Simply put, the net profit from the sale of any real estate owned by a foreign national is taxable as a long term capital gain. At this time the LTCG rate is 15%. So, if there was a net profit of $100K from a sale, the tax liability to the IRS would be $15K. Many people are concerned about whether they will have to pay taxes to bothe the US (IRS) and Canada (CRA). The Tax treaty of 1980 eliminates double taxation for most people. But, if the tax due in Canada is higher than what is owed in the US, the amount paid in the US is credited to the amount due in Canada. To be sure, you should always consult your accountant or tax professional for information on your personal situation. The info supplied here is general and will apply to most people, but your situation might vary.
Buying your vacation home in Scottsdale, Phoenix, Mesa or any of the other wonderful cities in the Phoenix metro area is pretty easy. For more info on tax questions concerning a Phoenix are real estate purchase, please check out http://www.weareazrealestate.com/TaxQuestionsregardingrealestatepurchasesinAZ.ubr
Adam Tarr PC
Citywide Real Estate
Phoenix, AZ
480-236-7374
adam@WeAreAZRealEstate.com