Canadians buying Arizona Real Estate

Real Estate Agent with Dwellings Realty Group

This is a very imformative article about Canadians purchasing real estate in Arizona.  In addition, it outlines in great detail the important tax implications Candians should be aware of while considering purchasing real estate in the U.S.

Original content by Joshua Roubal

Canadians buying Arizona Real EstateArizona Real Estate

Canadians are buying Arizona Real Estate.  "Canadians surpass Californians this past year, 2010, as the top out-of-state buyers of Phoenix area Real Estate" as reported by Haya El Nasser of USA Today. Canadians are buying Arizona Real Estate and for good reason.  With Phoenix Real Estate prices at record lows, the Canadian Real Estate market at record highs and the dollar at par, this is the perfect investment opportunity for Canadians buying Arizona Real Estate.   Home prices have dropped 50% or more from 2006 in many Arizona communities.  This coupled with the warmth, beauty and peacefulness of the valley of the sun offer a beacon for our neighbors to the north.  To views Arizona homes, visit

So what is one of the most common questions for a Canadian buying Arizona Real Estate?  How long can I stay in the Arizona each winter?  Here is information directly from the Internal Revenue Service (IRS).,,id=96352,00.html

Substantial Presence Test


You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States on at least:

•1.      31 days during the current year, and

•2.      183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:

•o    All the days you were present in the current year, and

•o    1/3 of the days you were present in the first year before the current year, and

•o    1/6 of the days you were present in the second year before the current year.


You were physically present in the United States on 120 days in each of the years 2007, 2008, and 2009. To determine if you meet the substantial presence test for 2009, count the full 120 days of presence in 2009, 40 days in 2008 (1/3 of 120), and 20 days in 2007 (1/6 of 120). Since the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2009.


Arizona Real EstateIf you would like more information on Arizona Real Estate for Canadians, visit me at or call (480) 251-1765.

This information is intended as general guidance only and does not constitute tax, accountancy, investment or other professional advice. Neither Dwellings Realty Group nor the author can accept any responsibility or liability for loss which may arise from reliance on information contained in this website. We therefore recommend that for accountancy, tax, investment or other professional advice, you consult a suitably qualified accountant, lawyer, tax specialist, financial adviser, or other professional adviser. Please also note that your personal circumstances may vary from the general examples given in our web site and your professional adviser will be able to give specific advice based on your personal circumstances.***

Comments (4)

Lori Bowers
La Quinta, CA
The Lori Bowers Group

This sounds confusing to me. The Canadians I know seem to think they can stay here for 6 mos. each year as Canadian residents?

Jan 15, 2011 11:21 AM
Michael Roubal
Dwellings Realty Group - Scottsdale, AZ

Lori that's what I alway thought as well, but trust me this is the correct timeframe for Canadians staying in the U.S.  If you have any specific questions just let me know.

Jan 15, 2011 11:25 AM
Nor Yeretsian
Envoy Capitol Realty Inc. - Toronto, ON
Envoy Capitol Realty Inc., Brokerage Toronto

Thanks for sharing this info Michael. Taxes are confusing and not very productive for anyone on either side of the border ( 49th parallel ) . Where is NAFTA  when you need it ? Open borders and a free flow of traffic of both goods and people ? It seems we have gone the other way... unfortunately for both parties.


Nor Yeretsian

Jan 15, 2011 11:27 AM
John Puplava
ABC Home Inspections,L.L.C. - Prescott, AZ
ABC Home Inspections,L.L.C.

Michael..Lots of Canadians are buying up lot of home. I cant tell you how many inspections I have done for the Canadians. It's a lot.

Jan 15, 2011 01:09 PM