Capital gains taxes on U.S. sale
Posted date : May 12, 2021.
We sold a condo, in the U.S., this year – 2020. No tax was withheld. We have a slight gain in U.S. dollars. We have a larger gain in Canadian dollars, and intend to pay tax on that gain, in Canada. We have never filed taxes in the U.S, and do not have any U.S income. We do not have a U.S. tax number. Do you think we should file a U.S. tax return this year?
Paul Bergman
Kitchener, ON
U.S. tax law requires the filing of a tax return upon the sale of a U.S. property in your circumstances. FORM 1040NR should be filed in the year following the sale. At the time of filing, an application for a tax number is submitted and one will be assigned. Tax will be payable on any taxable gain. If you wish to comply with the law, a return should be filed.
