Apple, Home Buyer in Texas City, TX

We are Canadians buying a property for own use in Las Vegas. Do we nee to file us tax return, or we only file when we sell due to capital gains?

Asked by Apple, Texas City, TX Sun Feb 7, 2010

Do we need to file us tax return for owning a house in Las Vegas for personal use? Or do we only file when we sell, if there is capital gain?

Help the community by answering this question:



My Name is Becky. We specialize in the management of investment properties and vacation homes for Canadians and other foreign investors, hence the name of our company, CanAm Real Estate Services.

The answer is yes. You do need to file. Here is why.

Even though the property is a vacation homes you will still have gains and or losses that can be written against. Our version of Revenue Canada is the IRS. Very similar.

You will have losses on the property.

1. Property taxes (they can be claimed)
2 Water bill
3.Electric bill
4. Gas bill
5. HOA (if applicable)
6. Insurance
7. Capital improvements.

So while your home may not generate income it does generate losses that you can claim against. Therefore if you purchased the home for $100,000.00 US Dollars and sold it in 10 years for $200,000.00 it is not an actual gain of $100,000.00 as you have generated throughout the years losses that can be claimed against the earned income.

If you have any other questions feel free to contact me.

Thanks and I hope this helps

Becky Cordova
0 votes Thank Flag Link Fri Feb 13, 2015
Foreign National Loans

Borrowers using TIN Okay
Borrowers with NO CREDIT SCORE
Borrowers with NO SSN
Foreign Nationals {Expatriate}- NO PASSPORT {Must have valid work visa or 30% Down}
70% LTV Purchases
65% LTV Rate & Term Refinance
50% LTV Cash Out {Possible higher if financials are up to par}
Multiple properties OKAY
Corporation purchasing and refinancing OKAY

Richard- El Bey
Avarice Investments
(706) 399-7813 cell
(678) 752-8062 Office
0 votes Thank Flag Link Mon Oct 14, 2013
You have to pay capital gains when SELLING a home in the US. There is a form that is from the IRS, which will be provided by your Title Company before closing.
If you need ANY help at all, I live in Vancouver, but am a US citizen with a Real Estate license in Las Vegas.
0 votes Thank Flag Link Fri Jul 8, 2011
I agree with previous post concerning reviewing the IRS website, an accountant, but also an attorney on the latest and most accurate information, applicable to your situation. We as realtors are not any of the above, and can only be the "source of the source" to assist you in those areas. If you need sources, feel free to contact me for further information at, 702-591-0300.
0 votes Thank Flag Link Wed Aug 18, 2010
According to the Foreign Investment in Real Property Tax Act (FIRPTA) once you sell the property you must "compy with IRS reporting requirements." However whether you're a buyer or seller, "The Buyer acknolwedges that if the Seller is a foreign person, the Buyer must withhold a tax equal to ten (10) percent of the Purchase Price, unless an exemption applies." (26 USC 1445(a)) As stated earlier, it is best to visit the IRS webiste ( as well as consult with an accountant who is familiar with IRS tax laws. There could be some liability, either way. Good luck.

Doug Bradford
Realty One Group
0 votes Thank Flag Link Mon Feb 8, 2010
From past experience if you are not renting it or generating any income from it, you do not need to file until you sell or in the event you ever do rent it, Your bets bet is to check the website or ask your accountant to be sure. good l uck with your purchase in Vegas.
Web Reference:
0 votes Thank Flag Link Mon Feb 8, 2010
It is my understanding no, only when you sell but it is always best to get professional advice
0 votes Thank Flag Link Mon Feb 8, 2010
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