For Canadian snowbirds who own a home south of the border, selling their property in the United States may make financial sense with the Canadian loonie sitting at around 71 cents on the U.S. dollar.
Especially for those who bought low during the financial crisis of 2008 or shortly after, a rebounding U.S. economy and real estate market may have some savvy seniors cashing in on their good luck.
According to a recent report by CBC News, Canadians who bought in areas like Phoenix, Arizona or Florida, the rise in home prices along with the exchange rate may result in a gain of up to 50 per cent. Even with capital gains tax, the jump in the cost of maintaining a property makes it very appealing for Canadian retirees to let go of their winter home while the dollar remains low.
For older adults, divesting themselves of a property to care for may ease not only the financial burden, it lightens the workload and worry of owning more than one home. As seniors anticipate living longer lives, they will need to sock away even more for their long-term care in old, old age.
To learn more about tax implications for Canadians with U.S. property, visit the TD Waterhouse website at http://advisors.td.com/public/projectfiles/15e0cd0e-e9fe-420e-a64d-f35112fa8508.pdf or speak with your financial advisor.