Sun Valley Belts

Nearly three million people a year leave the winters in the North Americas and escape to warmer winters in the south. Many Canadians are among them, and experts predict that the recent crunch in U.S. mortgages, seizures etc. mean that even more Canadians will be buying up vacation homes.

While it is certainly a good time to invest in this holiday, remember that the laws of the United States are different laws in Canada. You could breeze through the buying process and end up owning your dream home but cause complications to the elimination of property on divorce or death.

It's a horrible thought, but can be avoided with proper application of the law. One of the common pitfalls that happens when one spouse is close to the prospective property. The couple chose the location at the same time online, one of them is the business, and he or she signs for it and bought the property and voila, the house is theirs! Wrong! The house is one of them.

The problem arises when the couple decides that it is timely to move to two names. This is not a simple procedure in the States and Canada. In fact, the renaming is handled by the Inland Revenue U.S. as a gift is given, and for that, the IRS has a tax!

Gift tax may be something about 20% to almost 50% of the "gift" (ie half the value of the property). To avoid unpleasant surprises of this kind, using a real estate agent who is familiar with the differences in property law to buy, a lawyer familiar with the differences that you know not.

To further complicate the procedures of the United States to purchase property, the law is administered differently, according to the state in which you buy. There are at least six different ways to record a title, according to state and choice. Each channel has particular implications for taxes on the sale or death. In a state like Arizona, there is also a common property giving two more choices for the title, which is a plus for the Canadian Snowbird many opt for the Phoenix Valley.

capital gain is another tax that you may encounter. In this case, if it is payable, the Government of Canada will give you credit for capital gains already paid to the United States prior to levy their own.

This may sound complex, but none of these responses should trouble you as you are aware and engage a lawyer border. Property is going for a price well right now it's worth, especially for Canadians who are more for their money these days.

Canadian citizens are allowed to reside in the United States for 182 days per year (about six months). There is a great advantage to live in the states: if you get your green card, the Income Tax on pensions (especially higher bracket pensions) is much lower than in Canada.

There is another major advantage: it is very relaxing and healthy in the heat of the Sun Belt If you choose the area of Arizona, just to pack up and leave the cough syrup and cons carpet heating arthritis behind!