For the case where I would be added as a co-owner and no rental income is being made:
- Seems like I would not have to declare anything on my US taxes
- Filing FACTA doesn’t apply if I simply own the property, and it is not held in trust
- Filing FBAR doesn’t apply since it only applies to bank accounts that have more than $10000
- For Canada, I would still need to pay tax to Ontario (called Land Transfer Tax, which is due at the time of registration)… should get legal representation in Canada for this
- For Canada, the giver would typically get taxed under “Deemed disposition” for Canadian Capital Gains Tax (the capital gains is the increase I property value since it was originally required), UNLESS it is the principal residence of the giver
https://chatgpt.com/share/67b26587-2d9c-8009-a799-387aef162817
For the case where I would be added as a co-owner and no rental income is being made:
- For US taxes, I must report your percentage ownership of the rental income and expenses
- If you own 50% of the property, you report 50% of the rental income and 50% of the deductible expenses
- Canada taxes rental income for non-residents at a 25% withholding tax rate on the gross rental income (unless you file an NR6 to be taxed on net income)
- For US taxes, you can claim a foreign tax credit (Form 1116) for any Canadian tax paid to offset U.S. tax liability.
https://chatgpt.com/share/67b26af7-d6dc-8009-8d29-38ff65c31f4a