US Income, Gift, and Estate Tax Planning

Have you considered differences in the tax schemes between Canada and the US that affect your US Property?

One overriding concept must be understood. The US has three tax schemes (Income, Gift, and Estate) Canadians typically encounter, the determination of taxes due under each is different. At the same time however, all three intersect in different ways to cause unexpected negative tax affects in the other schemes if not properly addressed in preplanning. Describing the intersections of the three taxes are complex and are thus beyond the scope of this discussion.

Also, Canadians, depending upon their status, may be taxed as a “resident” for US Income and Estate Taxes. The definition of “resident” under each tax scheme differ. For US Income Tax reporting purposes, under the substantial presence test, a “resident” is defined under US 26 USC 7701(b)(3) regarding number of days present in the US, including days of arrival and departure. For estate tax purposes, residency is determined on subjective factors of intent of the individual at the date of death.

No matter the US tax, we happily coordinate with your Chartered Accountant and other trusted professionals to achieve positive income tax efficiencies under the Canadian Income Tax Act and US Internal Revenue Code.

Income Tax – Gain on Sale of Real Property
Foreign Investment in Real Property Tax Act (FIRPTA)
Gift Tax
Estate Tax
Income Tax – Rental income in the US

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