La Quinta, CA
(760) 895-3516

Tuesday, May 12, 2015

Holding Period for U.S. Property & Real Estate

Selling U.S. real estate as a Canadian non resident alien has tax implications. The tax will be different depending on whether the holding period of the U.S. property was less than a year or more than a year.

Sometimes in life the lines are blurred, such as in the case that one cannot determine whether the holding period of the U.S. real estate is less than a year or more than a year.

To Determine Holding Period for U.S. Property & Real Estate

  • The holding period for U.S. property and real estate begins the day after it is acquired
  • The holding period for U.S. property and real estate includes the date of disposal/transfer
  • Measure the holding period in Calendar Months
  • If the holding period is less than a year, it is a short term holding period
  • If the holding period is one year or more, it is a long term holding period

Example: Mr. A bought a U.S. real estate property and the transfer date was on January 1, 2010. The holding period for this real estate begins January 2, 2010. He then decides to sell it. If the transfer date is on January 2, 2011, the holding period will be long term. If the transfer date is on January 1, 2011, the holding period of the U.S. property will be short term.

Borders Bookkeeping offers tax preparation services for Canadians with a financial interest in the United States, U.S. Citizens and green card holders living abroad, and all forms of tax preparation. Please call for any questions regarding tax matters.

(760) 895 3516