Featuring the letters & concerns of our members
Do you have information regarding taxes (both U.S. & Canadian) when a Canadian sells a condo in Florida? Also, I heard there is a tax relief if you sell a Florida property to a Floridian.
R. A. Jobber
When a foreign person (Canadian) sells a real estate property (condo) in the United States (Florida), there is a withholding of 10 per cent of the sale price, which is sent to the IRS by the buyer, or on his behalf. This money is to cover any tax which may be payable on the sale. The tax is a maximum of 20 per cent of the profit, which is calculated considering the purchase and sale prices, and deducting the costs of sale and purchase, any capital improvements and certain other expenses. There is no benefit in selling to a Florida resident. There are some exceptions to the withholding, for instance, if the sale price is less than $300,000. and the purchaser, or his family, is going to occupy the premises for 50 per cent of the time during the next two years. There are several other scenarios, such as tax treaty implications and Canadian Capital Gains Tax, pertaining to such a sale, depending on the circumstances, which are far too involved to be discussed in this reply. Also, don't confuse withholding tax with actual tax. Withholding tax is simply a deposit on what you must pay, which could be nothing. It is best to consult a professional before proceeding with a sale, so you know exactly what your options are.
Dear Bird Talk:
Thank you for your warning of speed traps in Florida.
You may want to advise your readers that the province of New Brunswick has embarked on this lucrative source of income. Number eleven highway north of Moncton is posted at 100 kmp, but in certain areas the speed limit drops to 90 kmp. There are no warning signs of a "LOWER SPEED AHEAD" as you see in other provinces and states, only a small sign indicating the new speed. If you should miss it, as I did, the cost is $84.00. These zones are patrolled by RCMP, tailgating big trucks, reminiscent of the cop behind the billboard era. They do not show the alleged rate of speed on the ticket so that it can not be disputed in court. We are to assume that their machines are infallible and that the officer has never made a mistake, but the ticket does state that failure to comply with their demands will result in your drivers license being cancelled, even from other provinces.
If you absolutely have to go to New Brunswick, be careful.
Sincerely,
Mr. A. J. Cormier
Triverton Ontario
We definitely do recommend a visit to beautiful New Brunswick, but as always be careful.
Dear Bird Talk:
I would like to suggest that fellow snowbirds donate their old CSA magazines to hospitals and doctors offices rather than throw them out, as this will help keep fellow snowbirds, seniors and travellers up to date on matters that are so important for their travel outside of Canada. It might also be wise for CSA to donate any surplus magazines and newspapers to these same institutions (and maybe to auto service centres), as I'm sure it will increase circulation and will bring a lot of travellers up-to-date on many issues that they are not aware of.
Yours truly,
Stan Stiles
A great idea for all magazines and newspapers. We at CSA News always do print overruns to use as handouts at our Extravaganzas and CSA meetings. We also make sure we use every single copy.