by Roy Berg of Moodys LLP
By now it is difficult to find a Canadian who has not heard of the buying opportunity in US vacation homes. The weakness of the US real estate market and the strength of the Loonie combine to make US vacation properties seem like a bargain to many Canadians. However, before you jump into the investment you should be aware of the tax consequences, because an unanticipated tax bite can quickly turn a sweet deal sour.
Before delving further into this topic, however, it is important to know that the following discussion makes several important assumptions:
- You are purchasing vacation property and not rental property;
- You are not a US citizen;
- You are not, and never have been, a US green card holder;
- You are not domiciled in the US;
- You do not spend more than 121 days per year in the US on average; and
- You do not spend more than 182 days per year in the US.
If any of the foregoing describes your situation, you may already