TaxConnections Blogger Larry Stolberg posts about investing in the USAEven with some economic recovery, the landscape in the U.S. has made it very attractive for Canadians to purchase vacation or rental properties in the warmer climates. Interest has increased as result of lower pricing as well as the stronger Canadian currency with anticipation of realizing significant capital gains when the market fully recovers.

Canadian businesses wishing to expand into the U.S. marketplace should be aware of the income tax implications with respect to deriving income in the U.S. and repatriating profits back to Canada.

The U.S. like Canada, have specific tax rules with respect to inbound investing by non-U.S. persons. Often the simple things to be in compliance are not provided to the investor as part of the marketing process causing unnecessary grief for the unwary.

Rental and Sale of United States Real Estate

Withholding tax on rental and sale

Canadians who intend to rent their U.S. property are subject to a 30% U.S. withholding tax on the gross rent. Read More