Steven Flynn comments on BC’s new speculation and vacancy tax and the impact on foreign nationals who own Canadian real estate
Canada Revenue Agency (CRA) is poised to receive significant data from the BC government that will help tie home ownership to income declarations. While BC's speculation and vacancy tax is a measure to address the housing crisis in major urban centers in BC, it can also have an impact on “satellite” families who declare very little as Canadian income and those who own a secondary urban home that remains empty for most of the year.
British Columbia Speculation and Vacancy TaxJanuary 28 2019
Owners of BC residential property need to be aware of the new 2018 British Columbia Speculation and Vacancy Tax affects and how to apply for exemptions.BC Speculation and Vacancy Tax, Canada Revenue Agency, Canadian Real Property, Canadian Tax Law
US Federal Income Tax – Gains on Sale of your Home Part 1December 14 2012
Generally, Canadians living in Canada are not subject to tax on gains from the sale of their principal residence. However, for a Canadian resident who is also a US citizen or resident (including permanent resident or “green-card” holder and those meeting the “substantial presence” test), the same capital gain may be taxable on his or her US income tax return. Under US Federal tax law, an individual may exclude from income up to US$250,000 of gain from the disposition of his primary residence. For a married couple filing a joint US income tax return, the maximum exclusion is US$500,000. Any capital gain exceeding the excluded amount is taxed in the US in the year realized.Canadian Real Property, Personal US Tax Return Issues, Principal Residence, Sale Of Principal Residence, US Citizens Resident In Canada