Hi real1234:
Thanks for the interesting question. As it so happens, I am a resident
of Ontario. We have good friends - who live in Maryland - but also own
a house in our small city. So I know it's possible!
However, I also found the following resources to help you further:
I'm a U.S. citizen who wants to buy a house in Ontario to retire. What
are the requirements regarding; taxes?, length of stay?, can I use my
own US health insurance in Canada?
URL: http://www2.jurock.com/askexpert/answer.asp?id=2556
Quote: "If you maintain a home in the USA, you can buy a place in
Ontario and use it as a seasonal residence. i.e you could spend six
months in Canada in the summer and six months in the USA in the
winter."
What Laws Govern The Acquisition, Use And Development Of Real Estate In Ontario?
URL: http://64.233.179.104/search?q=cache:H2w4n7aVNu0J:www.casselsbrock.com/COBIC/COBIC_0405_Master_5A_v07_15.asp+americans+%22property+in+Ontario%22+&hl=en
"In most provinces, a non-resident has the right to purchase, hold and
sell real property...The Land Transfer Tax Act (Ontario) provides that
upon a change in the underlying (registered or beneficial) ownership
of any real property located in Ontario, the party acquiring the
interest must pay land transfer tax. The applicable rates are
summarized below."
RC4161 Customs Information for Visitors to Canada and Seasonal Residents
http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4161/rc4161-e.html#P268_23302
Quote: "As a non-resident of Canada, if you acquire a residence in
Canada for seasonal use or lease one for at least three years, you
have a one-time entitlement to furnish the residence with certain
goods, duty and tax-free. This does not apply to a mobile or portable
home, a time-share residence, a residence that you will share with a
resident of Canada, or to a residence that you will rent or lease to
others in your absence."
International and non-resident publications
URL: http://www.cra-arc.gc.ca/tax/nonresidents/publi-e.html
Note: This contains a lot of useful tax information, including on
selling and renting your Ontario property.
Cottages in Canada: Where life's good to go
http://www.grandbend.com/allan_barnes.htm
Quote: "Americans who own vacation property in Ontario must maintain a
permanent residence in the United States and stay in Canada only for
up to six months at a time.
When Americans sell a cottage in Ontario, according to Revenue Canada,
they must use a notary or lawyer there. The Canadian government
collects 33 percent of the capital gain as a withholding tax.
American residents who sell must also file a Canadian income tax
return that year, listing only the capital gain from the sale.
Seventy-five percent of that amount is taxable at a rate from 17
percent to 29 percent. The withholding tax is credited against any
money owed.
The capital gain must also be reported to the Internal Revenue Service
in America. If the profit has already been taxed in Canada, however,
it can be claimed as a foreign tax credit so the money isn't taxed
twice, said Dave Tash, IRS spokesman in Detroit. "
Title: Land Lease Arrangements
URL: http://www.gov.on.ca/OMAFRA/english/busdev/facts/01-065.htm
Quote: "Non-resident Witholding Tax
If the landlord is a non-resident of Canada the tenant is required to
withhold 25% of the rent (cash rental or crop-share) and submit it to
Canada Customs and Revenue Agency (CCRA). When the tenant does not
remit the 25% withholding tax, CCRA will attempt to collect the tax
from the landlord. If the landlord does not pay this tax, the tenant
will be liable for the payment."
Canadian Bounty
URL: http://www.departures.com/mi/mi_1199_canadianre.html
Quote: "From a bureaucratic standpoint buying property in Canada is no
harder than it is here. 'As long as you don't become an immigrant,
buying a home and land is as easy here for Americans as in the United
States,' says Robinson, 'and it doesn't take long to complete the
paperwork either.' According to Kirkpatrick, it's even easier. 'We do
not have an escrow period on purchases,' he says. 'In the United
States there are private land registry systems where you deposit your
property title. In Canada we have central provincial and regional
government land registry offices. The title pops up within hours of
registering a claim, so the entire certificate of indefeasible title
transfer?our equivalent of a deed?occurs right away.'...
Search Strategy (on Google):
* "house ownership" "U.S. citizen"
* residential property non-resident site:.gov.on.ca
* americans "property in Ontario"
* "U.S. residents" "property in Ontario"
* "seasonal residence" ontario american regulations OR rules OR laws
* "buying real estate in Ontario" americans
* "real estate in Ontario" americans residential
* "real estate" Ontario americans residential
* property Ontario "american residents" residential
I hope this helps!
websearcher |
