Canadian Client

[Bob Vinson]

I have a client that owns a home in Canada that needs $10t to fix up to sell. Client lives in the states and can not come up with the money & time to do the work. She thinks it would bring something north of $500t. How can I find Canadian investors? How would the owner do an exchange? Does 1031 exchange work for her? Who knows about the taxes she will be responsible to pay due to any gain she might have? 

Are these questions for John Chapman and Jerry Puckett? 

[Bill Exeter]

Originally posted by @Bob Vinson:

I have a client that owns a home in Canada that needs $10t to fix up to sell. Client lives in the states and can not come up with the money & time to do the work. She thinks it would bring something north of $500t. How can I find Canadian investors? How would the owner do an exchange? Does 1031 exchange work for her? Who knows about the taxes she will be responsible to pay due to any gain she might have? 

Are these questions for John Chapman and Jerry Puckett? 

Hi Bob,

Yes, the U.S. taxpayer can 1031 Exchange Canadian property if it was held for rental or investment purposes as long as they want to reinvest into Canadian property through the 1031 Exchange.  Foreign Property 1031 Exchange requirement that you sell foreign property and then reinvest in foreign property.  They would still have to pay any Canadian taxes due, but would be able to defer any U.S. capital gain and depreciation recapture taxes.