What really happens when a Canadian sells property in the U.S.—and how do you avoid unexpected tax surprises?
In this episode of Snowbirds Expat Radio, host Gerry Scott welcomes cross-border tax professional Steven Flynn to discuss the growing trend of Canadians selling real estate in the U.S., particularly in sunny destinations like Florida and Arizona.
They break down the key tax implications, from federal withholding rules to state-specific obligations, and explain why Canadians need to file U.S. tax returns to reclaim overpaid taxes. The conversation also highlights the importance of foreign tax credits, how estate sales are handled, and why pre-sale planning can make all the difference.
Whether you're actively selling or just starting to explore the process, this episode offers practical insight to help you prepare and protect your financial interests.
Key Takeaways:
✅ Growing Trend: More Canadians are choosing to sell their U.S. properties due to lifestyle and financial changes.
✅ Federal Withholding Applies: The IRS withholds a portion of the sale price from non-resident sellers.
✅ State Tax Rules Vary: Tax responsibilities can differ significantly from state to state.
✅ Tax Filing Required: Canadians must file a U.S. tax return to report the sale and request refunds.
✅ Foreign Tax Credits Help: These credits can reduce or eliminate double taxation between Canada and the U.S.
✅ Estate Sales Follow Similar Rules: Estates must also comply with U.S. tax filing and withholding requirements.
✅ Plan Before You Sell: Early tax planning can help avoid surprises and maximize your net proceeds.
✅ IRS ID Requirements: Sellers may need to obtain a U.S. tax identification number.
✅ Refunds Can Be Lost: Missing tax filing deadlines may result in forfeiting refunds.
✅ Professional Help Makes a Difference: Having the right guidance can simplify a complex process.
🎧 Tune in now on your favorite podcast platform for an informative look at cross-border property sales.
🔗 Subscribe to Snowbirds Expat Radio for more conversations on real estate, taxes, and expat living.
📢 Questions or comments? We’d love to hear from you!#Snowbirds #CanadianInUSA #USTaxForCanadians #CrossBorderLiving #RealEstateAbroad
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