Mav Realty

One of the common questions I get from prospective Canadian buyers has to do with taxes and responsibility for those taxes.  Often it is voiced by the following line:
As a Canadian citizen, do I need a US Social Security number, and will I have to file a US tax return?

The only number that will matter for you as a Canadian citizen purchasing real property in the US is the Individual Taxpayer Identification Number (ITIN). An ITIN is a nine-digit number issued by the U.S. Internal Revenue Service (IRS) to individuals who are required for U.S. tax purposes to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a social security number (SSN).   Social Security numbers (SSN's) are only held by U.S. citizens or qualifying legal residents.  Of course your SIN won't matter here in the states, that's for CRA

You can find the application for, W-7 for ITIN at www.IRS.gov

 You will need to file a U.S. tax return, but how and when depends on what type of property you have and income you are receiving.  If you are disposing of a residence you will be subject to capital gains taxes and FIRPTA .  If you own an income generating property, you will most likely want to file a US tax return to take advantage of expense deductions.  This aspect of the tax implications is far too complex to provide details on that will fit everybody.  Talk to your tax professional concerning tax cross border tax implications of owning real property in the US, whether as a vacation home or income producing.

Adam Tarr PC
Citywide Real Estate
Phoenix, AZ
480-236-7374
adam@WeAreAZRealEstate.com