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Dear Bird Talk, I have seen a number of questions and answers regarding selling your home in the U.S., but I haven’t seen any information about subsequently squaring up with the U.S. Internal Revenue Agency. How do I get our money back to Canada? I assume that a currency exchange company can help with getting the money back tomy Canadian bank. I amwondering what type of reporting I need to do with CRA? Also, a significant gain was made on the exchange fromwhen I withdrew money from my Canadian bank to finance the purchase in the U.S. and now, when I am going to bring the cash back to Canada. I am assuming that the CRA would look at this as a capital gain? Anything which you can tell me would be appreciated. Donald Cocks Medicine Hat, AB Ed.: Firstly, any gain on the exchange is taxable in Canada as income. There are no restrictions on taking funds back to Canada. If you have a local bank account in the U.S., deposit the funds and, in Canada, simply write a cheque on that account and deposit it into your Canadian bank account.You might consider opening a U.S.-dollar account at your Canadian bank and depositing to that account. BirdTalk Featuring the letters & concerns of our members SEND YOUR LETTERS TO Bird Talk, c/o CSANews 180 Lesmill Road Toronto, Ontario M3B 2T5 or by e-mail: csawriteus@snowbirds.org Bird Talk Dear Bird Talk, I am not sure if Canadians are fully aware that if you are not a U.S. citizen and decide to sell real estate property in the U.S., 15% of the selling price will be deducted from your proceeds and sent to the IRS within 20 days after closing. It is called a withholding tax, which is really a deposit against the capital gains tax due. The capital gains tax is based on the profit made on the sale, and is reported on a year-end U.S. tax return. The reported capital gains tax due is deducted from the withholding tax (deposit) and the balance is refunded. This could take several months. This initial 15% withholding tax (deposit) can turn out to be a considerable amount. Anne Smith Bolton, ON Ed.: All of that is correct. There is one exception available if the sale price is less than $300,000. If the purchaser or members of his/her family intend to occupy the premises for at least 50% of the occupied time over the next two years after the closing, withholding can be avoided. This does not affect any capital gains tax that may be owing, or the requirement to file a tax return relating to the sale. Dear Bird Talk, I have a mobile home in a Florida home park on rented land. If I sell, do I have to file a tax return? It’s considered a vehicle because, when I bought the house from an individual, he gave me the title certificate and I went to the Department of Motor Vehicles to do the transfer myself. Please help me. A real estate agent tells me that I don’t have to make a statement to FIRPTA. Thank you. Lina Larochelle Sherbrooke, QC Ed.: FIRPTA does not apply, as your property is not considered to be real estate. However, if you realize a capital gain on the sale, you are taxable on any amount greater than $70,400. If the gain is less, there is no tax. Dear Bird Talk, We bought a personal use home in Goodyear in 2007 and sold it at a capital loss in 2015. We had no U.S.-based income, so did not file a U.S. income tax return. At that time, we purchased a larger home and we are optimistic that it will sell for a considerable capital gain in the near future. Can the earlier capital loss on the first house be used to offset some of the anticipated capital gain on the current house? Is it too late to get the earlier capital loss on the U.S. tax record? I am guessing that many snowbirds went through a similar situation. Stephen Murray Medicine Hat, ON Ed.: We would suggest reporting both transactions in the tax return which you file on the sale of the present property. Nothing to lose. Dear Bird Talk, Being a Canadian owning a mobile home in a park where I pay land rent, how would I ensure that my daughter has the right to ownership of my mobile home in Florida upon my passing? Anything in particular that would have to be done to ensure this in the U.S. and/or Canada? Angela Staples Baltimore, ON Ed.: You and your daughter need to attend at the local motor vehicle registration office and transfer the title from yourself, to yourself and your daughter as joint owners of the property. As well, you need to approach the owners of the park and ascertain what is necessary to accomplish your wish in the documentation relating to the park. CSANews | SPRING 2022 | 9

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