Selling U.S. home
Posted date : Dec 16, 2021.
I have reached the age where I can no longer travel to Florida for the winter and must sell my manufactured home in Bradenton. I purchased my home in the early 2000s and believe that it is worth more now with the improvements I have made, but don’t want any trouble with the U.S. government with capital gain or profits from the sale. I have also heard that the title transfer people may withhold 10% for a year, but that I can apply to get that back a year later. Can you provide your thoughts on this please?
D M Smith, Stouffville, ON
Ed.: Assuming that your manufactured home is on rental land, such homes are treated like, and registered like an automobile. Any profit, after having deducted the costs of improvements and any costs of the purchase and sale, should be reported to the IRS as a capital gain and tax paid thereon. Tax withholding is the norm and you would get it back, so you do not have to pay tax in both countries. The tax would be graduated up to a maximum of 20%.
