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January Preferred Client Update!

Blog by Kim Twohey | January 3rd, 2017



Why Getting an Annual Real Estate Review is Important

Your Real Estate investment is likely the biggest single expenditure in your lifetime so why not keep a pulse on its value? Life can happen fast and keeping a relationship with your trusted Realtor can benefit you in many ways.

1) You will learn the real time value of your highest valued asset.

2) Realtors can give you the real scoop on what is happening in your neighbourhood or for properties like yours. Unfortunately newspapers and media often report the biggest headlines to sell papers or get website traffic. Their reporting is broad covering the whole market in as few words as possible. Not only is this misleading to the common home owner but if you believe the reporting word for word, you could be limiting your own financial growth in Real Estate.

3) Perhaps it is time to move up or move down, build, or time a purchase or sale that will maximize your position. Your CIR Realtor can assist you in solving this puzzle and protecting your best interests.

4) Thinking of renovating with the thought of moving sooner than later? Why not bounce your renovation ideas off your agent that knows what improvements will maximize your selling value or save you from over renovating your home?

Please do contact your CIR REALTOR® for your complimentary review so we can ensure you have the information you need to make informed long term decisions about your home.


Buying US Property A Tax Guide For Canadians

If you are a Canadian resident who is intending to buy a residential property in the United States, it is important that you are aware of the following tax implications, particularly if you intend to rent it for any period of time during the year. A non-US resident owning a US residential rental property may elect either of the following options:

OPTION 1 elect to pay a tax equal to 30% of the gross rental revenue
OPTION 2 elect to have rental income taxed on a net profit basis.

In order to avoid the 30% gross revenue tax on your US property you must file form W8-ECI and provide a copy to the rental manager or person renting your property. If you elect to pay tax on a net profit basis you are required to file a US personal or corporate tax return to determine the amount of US tax owed. If you elect this option you will need to apply for a US tax identification number. The net rental profit on your US real estate is calculated as the gross rental income less ordinary and necessary expenses.

If you intend to use a US residential rental property for personal purposes in any tax year, you should be aware that this may have certain tax implications depending on the amount of time you use the rental property. These tax implications may have relatively little impact for a short vacation but residing in the US for a prolonged period can result in a non-resident being deemed by the IRS to be a US resident and taxed in the US on worldwide earnings.



Contact CIR REALTY Now For A Free Market Evaluation. Our goal is to meet all of your real estate needs. We look forward to hearing from you. We are happy to answer ANY questions you may have.