Tax Talk Podcast

Save on Taxes When Selling U.S. Property: For Canadians

Jared Pilon Season 1 Episode 58

If you’re selling a U.S. vacation home or rental as a Canadian, don’t let FIRPTA withholding, state taxes, and cross-border filings trap your cash for years.

In this Tax Talk episode, Jared talks with cross-border tax pro Steven Flynn about how Canadians can sell U.S. real estate the right way. That means minimizing withholding, avoiding double taxation, speeding up refunds, and sidestepping CRA headaches. From ITINs and state returns to foreign tax credits and forex gains, this is your practical roadmap to a clean exit.

What you’ll learn:

  • FIRPTA explained: why buyers withhold up to 15% at closing and how/when it can be reduced
  • How to calculate actual tax on the gain (not gross proceeds) on state and federal taxes
  • Filing strategies that cut refund timelines from years to weeks
  • ITIN essentials: why you need one, when to apply, and document pitfalls that cause delays
  • How foreign tax credits work—and what proof CRA wants
  • Filing order and calendars that help you avoid audit jams
  • What to do if you haven’t reported prior U.S./Canadian rental income


Find us at:

https://www.legacyllp.ca/

reception@legacyllp.ca


Need to get in touch with Steven?

Steven Flynn

Andersen LLP

steven.flynn@ca.andersen.com


Timestamps

00:00 Kicking it off

01:32 Overview of the Foreign Investment and Real Property Tax Act (FIRPTA)

05:42 Other tax obligations as a Canadian owning an American property

11:56 Tax credit application processes & timelines

18:32 Common mistakes

21:41 What to look out for when buying a property in the US

23:48 Bonus tips

27:31 Wrapping it all up


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