Do you pay capital gains on selling property in Canada if you are a resident of USA?

tax treatment of gains on sale of canadian real estate depends on whether gain treated capital gain or business income. generally, if you, non-resident, has been actively buying , selling real estate inventory, operation considered business , taxed on full amount of gain.

if gain capital gain, case if bought property investment, normal canadian tax rates applied 50% of gain. however, non-resident required pay estimate of tax before sale, amount equal 25% of gain. upon payment, canada revenue agency issue clearance certificate vendor. if purchaser not receive certificate you, required withhold , remit canada revenue 33.3% of gross purchase price you!

may wish check tax accountant see if need report cdn disposition on american tax return. need to. if so, should able claim on american tax return cdn taxes paid on disposition foreign tax credit.

we own real estate in canada , citizens. when , if sell, how capital gains work if there any? pay in canada or report sale on tax returns in us?

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