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Updated almost 9 years ago, 03/14/2016
Canadian trying to get refund from IRS on a flip
I started a discussion about the flip I did in Spokane WA, and I created a topic on that. I thought I would start a new topic on my challenges to get a refund back from IRS.
The short story is I bought a property in Nov 2014 and had it sold in Oct 2015, it was on the market for close to 3 month for sale. Anyway I was still able to make a few bucks on the flip but the reason the IRS took 10% of my sale price was because I was selling it to someone who was putting a tenant in the property, if it was owner occupied I wouldn't have had to worry about this issue( also if sale price was above $280,000 and was sold to owner occupied IRS would have taken %10 off).
right now I have started working with an accountant to get my money back. He is charging me $450 for getting the refund and $150 for getting me a US tax number. I have to send him my purchase and sale paperwork, paperwork for everything I have spent on contractors and material. The only thing I am still trying to figure out is I don't think I can use my transportation cost as expense which I don't get why. I have to get my passport certified by Canadian passport office and send a copy over. I also have to declare how many days I have spent in USA in the past 3 years.
So far that's all I have been asked and will update this post if there are anything else. If anyone else has the experience of what I am going through please post below and let me know if this sounds about right.