US Tax Real Estate Reporting
The US tax rules applicable to real estate differs significantly from Canadian tax rules on the same asset. There are differences in the tax treatment of real estate held for business and personal purposes and differences in the amounts that may be excluded from capital gains arising on the sale of a principal residence. US expats often have several other issues that need to be considered including passive activity loss limitations, different depreciation rates, foreign currency exchange rate gains, as well as the impacts exchange rates may have on real estate investments.