Warning for Canadians with homes south of the border
Canadians who like to spend the colder months of the year in the sunnier parts of the US are being warned to watch out for the taxman. Advances in technology now make it even easier for the US Internal Revenue Service to track so called snowbirds and if you rack up more than 182 days south of the border then they want your cash! The Financial Post reports that even an average of 120 days over a three-year period can attract the attention of the IRS. Those who fall foul of the taxman can expect a claim on their worldwide income and other penalties. Canadians are among the biggest foreign purchasers of US real estate but there may be fewer transactions this year due to the lower value of the Canadian dollar; unless of course it’s Canadians selling their property down south to cash in on the exchange rate.