Cardinal Point’s Vice President Terry Ritchie was recently featured in an article about renting out U.S. properties in the Vancouver Sun. The piece takes a look at the tax implications for Canadian residents who own vacation properties in the U.S. that they choose to rent to others.
A few highlights:
- Many Canadians bought vacation homes in the U.S. during the country’s housing market meltdown in 2008.
- For those who only use the property themselves, there are no tax implications until they sell or die.
- Those who choose to rent out their U.S. properties must file a tax return with the IRS (in the U.S.) as well as the CRA (in Canada).
- They may owe taxes to one or both countries on any income earned.
- Tax returns must be filed even if the property is not profitable.
Get all the details when you read the entire article here.
