Buying property in the US may increase your taxes
Buying a vacation property in the US could land you with an extra tax bill. A new report by CIBC called ‘Your US Property Could Be Quite Taxing’ says that many Canadians get caught out by not realising the potential tax implications of their second home in the sunshine. There are lots of pitfalls including tax burdens from both US and Canadian authorities when renting out your second home and capital gains tax if you sell it. There are ways to mitigate the burden and the report suggests that while it can be complex, careful planning can save thousands of dollars.