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.
Canadians buying Arizona 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 www.joshuaroubal.com.
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). http://www.irs.gov/businesses/small/international/article/0,,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.
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.***