If you are a Canadian and do not have any U.S. residency status (i.e. U.S. Citizenship, Green Card or Visa) your maximum allowable stay in Point Roberts will be limited to 6 months, less one day. This length of stay will be cumulative for each consecutive 12 month period. Therefore if you stay in Point Roberts at your cabin for 182 days, you are then legally required to vacate the U.S. for 183 days before your next 6 month vacation period begins. If you plan to stay in Point Roberts all summer and occasionally on weekends the rest of the year; which is how most Canadians enjoy their vacation homes; be sure that the total number of days does not add up to more than 182. It is very important to realize that you spend your time in Point Roberts as a visitor. You must maintain your permanent residence in Canada during your stay in the U.S.. Simply having a mailing address in Canada does not constitute a permanent residence. Point Roberts is a place to be enjoyed by everyone; understanding and complying with the immigration laws will ensure your stay is enjoyable and hassle free, when you cross the border.

This information is provided to assist you in determining your responsibilities in regards to the use of your real property in the United States. This material is intended for informational purposes only, and should not be considered a complete discussion of the Immigration laws relating to these matters. It is distributed with the understanding that Point Roberts Realty Inc., is not rendering legal, or professional advice on this matter and assumes no liability whatsoever in connection with its use. It is recommended that you should consult with the United States Consulate office, Immigration Service and/or a Immigration Attorney for further clarification.

What is FIRPTA?

FIRPTA ( The Foreign Investment in Real Property Tax Act of 1980 ) is a section of the U.S. Income Tax Code which specifically deals with the sale of U.S. real property by a "nonresident" of the U.S. When a nonresident sells property in the U.S., they are required to report the sale by filling a U.S. tax return for the year of the sale, and pay income tax that may be due on the capital gains of the sale, in the same manner that any U.S. resident would.

This means that when you sell your property in the U.S., you will be required to file form 1040NR, U.S. Nonresident Alien Income Tax Return, for the year in which you sell the property. If you are married and the property is in both of your names, you will each have to file a return. You will be required to report all income you receive from U.S. sources. This will include any capital gains you have from the sale of your property, and any interest income or other items of income you may have from U.S. sources. You will have to pay income tax on any capital gain you have on the property. The current tax rate is 26% of the amount of capital gain.

Am I a nonresident?

You are considered to be a nonresident unless you meet either the " green card test" or the "substantial presence test".

Green card test - You are resident for tax purposes if you were a lawful permanent resident of the United States during the year and hold a valid "Green Card".

Substantial presence test - You are considered a U.S. resident if you meet the "substantial presence test" for the year of the sale. You must be present in the U.S. for at least 31 days during the year of the sale, and 183 days counting the number of days in the year of the sale and 1/3 of the number of days present the previous year, and 1/6 of the number of days present the year before that.

If you are a permanent resident, then you must file a U.S. Income tax return, and report all of your income from all sources, including those outside the United States.