With the current Unified Amount of $11,700,000 for an individual, and $23,400,000 for married couples (2021), US Estate tax is currently not a significant issue when considering the Tax Treaty between Canada and the United States. Whether US Estate taxes are due is essentially based upon the value of the Canadian’s US based assets as the numerator over the value of the Canadian’s worldwide assets (denominator) multiplied by the then existing Unified Amount. Determination of value is in US dollars. If a Canadian’s worldwide assets are less than the applicable Unified Amount, then s/he will not experience any US Estate Taxes. If worldwide assets are greater than the applicable Unified Amount, detailed tax planning is in order. One significant caveat needs to be considered, US Estate taxes are subject to change depending upon who is in the White House and control of Congress. So while a Canadian may be safe at $11,700,000 s/he may not be at $5,000,000.
US Income, Gift, and Estate Tax Planning
Income Tax – Gain on Sale of Real Property
Foreign Investment in Real Property Tax Act (FIRPTA)
Income Tax – Rental income in the US
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