Canadians warned about new home taxes in US
Economists believe the effect of new property tax laws due to be applied across the USA real estate markets the year after next may catch many overseas property investors unaware.
USA real estate prices crashed in the aftermath of the global economic downturn which in turn sparked a buying spree among Canadian property investors keen to make more than a fistful of dollars once the markets started to recover.
Property investors from across the border are now the largest group of non-American buyers of USA real estate and experts are concerned that Canadian buyers may not realize how different property tax laws are in the States when compared to those at home.
At the start of 2013 exemption levels on estate tax for owners of property in the States falls from $5 million in total worldwide assets to $1 million and the upper level of tax rises from 35 per cent to 55 per cent . Experts suggest potential buyers use legal representatives well versed in the new legislation prior to signing on the dotted line to avoid a nasty shock further down the line.