requirement of non-resident property in to be lower in value than primary US residence -
Wednesday, August 13 2008 @ 12:49 AM GMT-7
We own a seasonal property in Canada for which we paid $450K US. The property includes a house, barn, greenhouse, and large shed on 65 acres.
Our current primary residence in the US is valued at an amount greater than we paid for our Canadian seasonal home.
We wish to move to New England to be closer to our Canadian seasonal home. We wish to sell our current residence and purchase a condominium that would be lower in value than we paid for a the entire Canadian property.
We will occupy the Canadian property less than 183 days/year. *
Will having a primary residence in the US lower in value than the Canadian property cause us any problems?* We do not wish to confront taxation in Canada based on residency perceptions. (If I took just the Canadian house's value (not including the land and outbuildings) it probably would have a lower value than the condominium we are interested in, all other things equal.)
Thank you.
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david ingram replies:
This was an old question but i spotted it in a bunch of messages collected 'to be answered' and it is a good question.
It has been five years since I have heard of anyone with a problem with values between the countries. Even then it was the US that did not like the Canadian having a more expensive or fancier place in the US than in Canada.
I do not believe that you will have a problem from what you have told me provided that you are truly only seasonal and do not leave things like US registered cars, trailers or boats behind when you go back to the US.
It was never something written in law but something that the INS people came up with to deal with people who were really living in the US in places like Point Roberts outside of Vancouver.
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