Tax Implications of Selling Investment Property in US while in Canada

[sandeepkaur82]

Friends

I was a H1B holder in US for about 10 years and recently moved to Canada. We sold our Primary residence in US before moving to Canada. We own an investment (rental) property in US. Although it is rented for an amount more than the mortgage and HOA fees, I am in a dilemma whether to sell it or not.

Anyone did it or have any opinions, please chip in your thoughts about the tax implications.

Thanks

 

[harirajmohan]

Friends

I was a H1B holder in US for about 10 years and recently moved to Canada. We sold our Primary residence in US before moving to Canada. We own an investment (rental) property in US. Although it is rented for an amount more than the mortgage and HOA fees, I am in a dilemma whether to sell it or not.

Anyone did it or have any opinions, please chip in your thoughts about the tax implications.

Thanks

Dont sell. Property has nothing to do on immigration status and should not sell an income property unless there is some other important expense, unless its too tedious to maintain/monitor the property.
File taxes for US income and show it in Canada. All commuters show the US income and file taxes in both places anyway. Filing taxes in both places is not that much burden.

 

[lampbreaker]

Don't sell it only because of your immigration situation. Base the decision on economic rationale.

 

[sandeepkaur82]

Dont sell. Property has nothing to do on immigration status and should not sell an income property unless there is some other important expense, unless its too tedious to maintain/monitor the property.
File taxes for US income and show it in Canada. All commuters show the US income and file taxes in both places anyway. Filing taxes in both places is not that much burden.

Don't sell it only because of your immigration situation. Base the decision on economic rationale.

Thanks for your opinions. However, if I have to sell it, what will be the tax implications in US and Canada? e.g. Since it is an investment property, will it be considered for Capital Gains etc.? And since I am a Non Resident Alien now, will that make a difference on Taxes in US?

 

[lampbreaker]

It will most likely be capital gains on foreign property/investment from Canadian POV. It will have to be reported in your Canadian return.

If you file a non resident return in the US, then it will have to be reported over there too.