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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2430
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I am a Canadian citizen. I want to sell a property I own in

Customer Question

I am a Canadian citizen. I want to sell a property I own in Florida, valued at approximately $250,000.00. Please tell me what government forms I need to complete the sale. Thank you.
Submitted: 7 years ago.
Category: Tax
Expert:  Anne replied 7 years ago.
Are you wanting to know what US forms you need, or Canadian forms?
Customer: replied 7 years ago.
I want to know what US forms I need.
Expert:  Anne replied 7 years ago.
One last question please so that I may give you the proper information:

Were you using this home as rental property and renting it out?
Customer: replied 7 years ago.

No. It was used only by family members. Nobody as been charged a fee.

 

Expert:  Anne replied 7 years ago.

HiCustomer/p>

Thank you for using justanswer. Since you were not using this home as investment or as rental property, then you would report the sale on page 4 of the 1040NR form, and any gain you receive from the sale, after subtracting your cost basis, would be taxed at 30%.

Please see below:

2008 Form 1040NRU.S. Nonresident Alien Income Tax Return

2008 Instruction 1040-NR

Forms and instructions for tax year 2009 are not available yet, but there should be little, if any, change for this particular type of transaction.

I hope this helps.

Anne and other Tax Specialists are ready to help you
Customer: replied 7 years ago.

Thank you for your assistance, Anne. I have a couple of follow-up questions.

1. How do I pay the taxes due?

2. How do I calculate the cost basis? Are condo fees considered to be an expense?

 

Expert:  Anne replied 7 years ago.
Hi again

Your cost basis of your home includes your original purchase price, plus any improvements you made to the home while you owned it, such as putting on a new roof, adding an additional room. landscaping, etc Please copy and paste this link into your web browser. This lists some of the more common improvements, etc that people sometimes forget they did:

http://www.bankrate.com/brm/itax/Edit/tips/Stories/residence_basis.asp

Homeowners association or condo fees are considered personal living expenses and are not tax-deductible. If, however, an association has a special assessment to make one or more capital improvements, condo owners may be able to add the expense to their cost basis. You will need to check with the company that manages the condo to find out if any of your condo fees were used to pay any of the above listed items.

I hope this helps.