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Updated over 8 years ago,

User Stats

103
Posts
21
Votes
John Humphries
  • Investor
  • Courtenay, British Columbia
21
Votes |
103
Posts

Tax implications for US non-resident purchasing REI in the US

John Humphries
  • Investor
  • Courtenay, British Columbia
Posted

I'm looking for someone knowledgeable to bounce some tax questions off of regarding purchasing real estate in the US as a non-resident.  Currently, I'm a US citizen, Canadian permanent resident.  I live and work in Canada but still have some money in US accounts back home in NC.  I've been considering some turnkey investments in various states and am curious if this is going to create tax headaches down the road if I follow through.  Currently, I have no US income and my Canadian income has always been below the threshold that would require me to pay US taxes.  I do my US federal return each year along with my Canadian, but have not done a State return since I stopped having US income.  If I were to purchase an investment property, I'm assuming that I would start paying State income taxes in whichever state that I buy as well as having to claim that income on my US return (and my Canadian return).  With only one or two investment properties, and assuming no change in my Canadian income situation, I would think that I would still get the foreign income exclusion in the US but am curious if the State income taxes would take a big bite out of any potential profits.  I know this is a bit of tough question with lots of moving parts, so if anyone has any experience with this type of situation, I'm open to referrals or advice!  Thanks in advance.

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