Buying a Home in US for Investment

Jonathan_Chan
New Member



Joined: 29 May 2008
Posts: 4
Location: British Columbia

Posted: Thu May 29, 2008 10:48 am

 

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Hello
My wife and I live in Vancouver, BC and the house prices are through the roof. We found some houses in California that we would really like to buy as an investment but we also don't want to leave the house vacant and therefore want to rent out the house.

We're planning to pay for the house in full without a mortgage.

Our question:

1) Do we need to setup a bank account in California?
2) What are the tax implications for the rental revenue received and if we sold our house?
3) I know I've rented holiday condos in Hawaii and there was a property management company that oversaw and maintained the property and watched over it, Is there something like that available if we were to rent out our place and have someone watch over the renters?

Greatly Appreciate the help

Jon

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Steven
CanuckAbroad VIP



Joined: 28 Sep 2007
Posts: 1112
Location: Calgary

Posted: Mon Jun 02, 2008 3:11 pm

 

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There's a big thread in the US section on this.

1) Not necessarily but it would be a good idea to have a USD account;
2) http://www.cra-arc.gc.ca/E/pub/tg/p151/README.html read page 18 onwards - also you will need to fill in Form T1164 with your T1 and claim the foreign tax credit for any income tax you have to pay in the US;
3) Of course there is, but you'll find that once you figure out what you can charge as rent, minus taxes, minus management fees, minus repairs & maintenance that there isn't much left over.

You can make money being a landlord but being a long-distance landlord of only one property is not the way to do it, IMO.
_________________
Steve.

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Jonathan_Chan
New Member



Joined: 29 May 2008
Posts: 4
Location: British Columbia

Posted: Mon Jun 02, 2008 3:18 pm

 

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Thanks!

Will read into it.

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