Navigating Cross-Border Taxation for Real Estate Investors

In this episode of Real Estate Without Borders, hosts Dave Hutch and Daniel Foch engage with CPA Sami to discuss the complexities of cross-border taxation for Americans investing in Canadian real estate. The conversation covers essential topics such as FATCA reporting requirements, capital gains taxation, the implications of the Foreign Investment in Real Property Tax Act (FERPTA), and the importance of understanding tax treaties. Sami provides insights into the documentation needed for tax purposes and strategies for optimizing tax on foreign investments, while also addressing challenges faced by investors in navigating cross-border partnerships and regulations.Americans need to understand domestic tax laws when investing abroad.FATCA requires reporting of foreign bank accounts over $10,000.FBAR filing is necessary for US citizens with foreign accounts.Buying real estate directly can be more tax advantageous than through a corporation.Capital gains tax rules are similar in the US and Canada.FERPTA applies to non-resident aliens selling US property, not US citizens.US citizens must report global income regardless of residency.Tax treaties help avoid double taxation between countries.Proper documentation is crucial for tax reporting and deductions.Investors should be aware of foreign buyers bans and their implications.