The US housing market has drifted lower, with house prices falling in 2012, according to the federal housing financial buy 7% from a year earlier, and by 1.6% the latest quarter. Yet despite depressed house prices, there are positive indicators.When nonresident sells a USA property, the USA government takes 50% of any capital gain as a withholding tax. American resident must also report the capital gain to the internal Revenue Service(IRS).When a nonresident sells a USA property ,the seller must provide the buyer with a clearance certificate prepared by the CRA .Without this certificate ,the buyer can keep a portion of the purchase price .If you are USA then property is principle place residence ,you are not taxed on the capital gains when you sells the property.you can designed any residence as a principle resident as long as you “ordinarily inhabit” it.In USA Real Estate for family unit only one residence allowed each year .this requirement has important implications.
If you are a resident ,but the property was not your principle resident for all the years you owned it ,you must prorate the capital gain for the years in which you did not designed the property as your principal residence.
owning property in USA can be profitable if you can understand the USA tax laws that apply to real estate investment .There is no residency or citizen ship required for buying and selling property in USA .You can occupy a USA residence on a temporary basis .Nonresidents can also own rental property in USA .When people buy property ,people pay a provincial transfer tax that varies from province ,but can be around 1% on the first 0,000 and 2% on the balance .Some taxes apply if this is your first property purchase in USA .Property owner must have to pay annual property taxes ,based on assessed property value ,which reflect market value .School garbage picker and other taxes are included .New home purchase are subject to the federal Goods and service Tex(GST),but a partial rebates can be obtained for new or builder-renovate Tax act require that 25% of the gross property rental income in each year.