Beware of the IRS Boogieman

by Sheldon Johnston and Sara MacLennan on 10. Nov, 2009 in Canadian Real Estate, Investing in Alberta Real Estate, Tips for Home Buyers

Everybody’s doing it.  Its the latest "it". Btw it ain’t sex I'm talking about… "it’s", going down south and buying a piece of Americana.  It’s seriously become almost as big as the Spice Girls.  Well almost. 

We’ve posted on here before about things you’ll want to consider when buying property in the US including a couple of the big no no’s to watch out for. One such issue is paying maintenance fees in empty HOA’s and condo complexes. 

So whenever I talk to someone else who’s on their way to buy some American property I simply ask: "How did you solve that IRS thing?"  “Huh?” is their usual reply.  “You know, that IRS filing thing that can have major implications on your estate?”. 

I’m no tax expert but there is some legislation between the U.S. and Canada about a reciprical tax treaty enabling one another to go after tax cheats.  Of course you're not a cheat, at least not deliberately.

So if you don’t know what I’m talking about, and you’re buying some property south of the 49th you better get some tax advice eh!

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9 Responses to “Beware of the IRS Boogieman”

  1. mc0709 10. Nov, 2009 at 4:46 pm #

    huh?

    Is this a teaser? Could you include more information?

  2. Philippine Real Estate 10. Nov, 2009 at 10:25 pm #

    Just found your blog through Google, and I have to say I thoroughly enjoy it.
    Thank you for the info. I’m looking forward to the additional valuable information here.

  3. Newcelebrity 10. Nov, 2009 at 10:44 pm #

    Thanks for the information.

  4. Sheldon Johnston and Sara MacLennan 11. Nov, 2009 at 9:57 am #

    This is not a teaser. The point is that if people don’t know the IRS tax implications such as required lifetime filings then they should do a little more research into what they are getting into.

  5. Tara 12. Nov, 2009 at 10:32 pm #

    What specifically are you talking about? Or is this random fearmongering?

  6. Sheldon Johnston and Sara MacLennan 12. Nov, 2009 at 11:10 pm #

    Me fearmongering…that’s a new one. It’s absolutely real and it has to do with IRS filings and lifetime requirements. Hopefully that is enough for you.

    Sheldon

  7. Chris 13. Nov, 2009 at 5:20 am #

    One new rule is the one prohibiting you from even picking up a paintbrush when you’re down there. If you buy a place, plan on having great group of contractors, or having some problems with immigration and homeland security.

  8. Sheldon Johnston and Sara MacLennan 13. Nov, 2009 at 12:20 pm #

    I was aware of this, however its small potatoes compared to the IRS filing requirements.

  9. Spud 15. Nov, 2009 at 3:33 pm #

    What is so onerous of having to file an IRS requirement each year? Is there something more problematic than simply filling in paperwork?