- quote -

Sorta..
They will need an ITIN - Income Tax Identification Number.
They will be liable for taxes to the US on the gain from the
property sale. In fact, the settlement agent will withhold
money from the proceeds. They will need to file a 1040NR
covering the sale. Canada should give them a credit against
Canadian taxes for someof what they pay to the US.

They DO NOT apply for a Social Security number.

Bruce Raskin, CPA
Small Business and Individual Tax and Accounting Services

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Yes, they would have to get an ITIN which would allow them
to file a form 1040NR to report the sale of the property.
They will receive a Form 1099S from the transaction
reporting the proceeds from the sale to IRS and to them. The
capital gain/(loss) on the sale will be the only income
reported and will be taxed acording to the US - Canadian tax
treaty. This is much better than trying to sell Canadian
property. They withhold 1/3 of the selling price as taxes.
And I thought Calfornia was bad with our 3.3%.

Linda Dorfmont E.A, CFP, CSA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

michael vickers wrote:

- quote -

I wish you wouldn't use the word "resident". They may US
residents for the purpose of the US tax code, and hence
subject to US taxation on all income. But, assuming you
mean "present in the US" rather than "resident in the US",
and they are still Canadian residents as seen by the
CCRA,....

- quote -

My understanding is that they have to apply for a ITIN (I(?)
Taxpayer Identification Number), not a Social Security
Number (the equivalent of the Social Insurance Number), and
file a US tax return on the sale of the property. If they
are Canadian residents, and the sale is ALSO taxable in
Canada, they may be elgible for a credit on the Canadian
return for (approximately) the lesser of the US or Canadian
tax due on the double-taxed income.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Hey folks,

I know I should have scoured the group, but I wasn't sure
quite how to phrase the search, so I'll just ask the
question.

My inlaws are Canadians who are resident in the US for about
6 months of the year.

They want to sell a property they own in Florida.

If they do so, they have been told (by "someone") that they
have to get a U.S. Social Insurance number, and file a U.S.
tax return.

Is this the case?

Any advice greatly appreciated.

Thanks,
Michael

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->