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Updated over 8 years ago, 06/19/2016
Seller lives in Canada, selling home in FL. How much Cap gains?
Home owner lives in Canada and is selling a vacation home in FL. How much capital gains tax will she be hit with if any?
#2 1031 Exchanges Contributor
- 1031 Exchange Qualified Intermediary
- San Diego, CA
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#2 1031 Exchanges Contributor
- 1031 Exchange Qualified Intermediary
- San Diego, CA
Hi Amanda,
Is this a vacation home used solely for personal use, or is there any seasonal rental activity involved so that they might qualify for a tax-deferred exchange?
Also, either way, a foreign seller will have to satisfy the FIRPTA withholding requirements, so I would have their U.S. tax advisor review the FIRPTA requirements so that they are prepared to deal with that issue upon sale.
Federal capital gains will be 15% or 20% depending upon their tax bracket. Florida does not have any state taxes, so they are good there.
She used it only for personal use, it was never a rental.
I'll have to Google FIRPTA as I don't know what that is.
Originally posted by @Bill Exeter:
Hi Amanda,
Is this a vacation home used solely for personal use, or is there any seasonal rental activity involved so that they might qualify for a tax-deferred exchange?
Also, either way, a foreign seller will have to satisfy the FIRPTA withholding requirements, so I would have their U.S. tax advisor review the FIRPTA requirements so that they are prepared to deal with that issue upon sale.
Federal capital gains will be 15% or 20% depending upon their tax bracket. Florida does not have any state taxes, so they are good there.
HI, its used for personal use only and never was a rental. I'm reading into the FIRPTA now