If I bought a property in the United states (Arkansas) and flipped it do I have to pay capital gains? Please read details before answering?

I'm not certain about Canada tax law. As for US taxes... were you a resident alien in the country on a work visa and residing in the US during the time of the transaction? If you were, then you might be required to file tax returns with the IRS and the state, just because of the gain being reported to them. For the amount of profit you are talking about, there would be no US federal or state income tax owed. You might be required to pay some tax on the profit on your Canada tax return.

If you were required to pay US income tax, again, I do not know Canada tax law, but if it is anything like US tax law, you would pay the taxes you owe to the country you owe them to, and Canada would credit you on your Canada return, for those amounts paid, against your tax bill in Canada. That way you are not being taxed twice.

If you never set foot in the state of Arkansas or the US and everything was handled by individuals on location and you only made phone calls/emails, then you might not have a taxable event as far as the IRS and Arkansas are concerned.

So, before you even think about doing flipping in the US as a Canadian, you need to get the answers from CRA and the IRS. NOBODY here can tell you how much in tax you might owe.

Yes you do, if you realized a gain.

if the house is not your primary residence which u had for more than 2, in some places even 3 years, u will have to pay tax on profit in the country where the house is. doesn't matter which country u officially reside. where i live it is 30%, u may easily google how much it is where u want to sell.

ps. some useless motherfcker troll moved all the morning business and finance questions to some strange categories. what a useless, pathetic excuse for life.

You would have to pay tax on a short term capital gain on Form 1040-NR

"Flipping" generally refers to a short-term capital gain - i.e. the asset is held for one year or less.

If that's the case, capital gains are taxed precisely as if they are normal income. The tax rate is based on your entire taxable income. If you held the asset for a longer period than one year, it's taxed at a lower rate, depending on how long you held it.

Either way, yes. You need to report it, and pay tax on the gain.

Since the sale took place in the U.S., I believe you would need to pay it to the IRS, even though you're a Canadian citizen.

But it's always best to go straight to the horse's mouth with this kind of question:

https://www.irs.gov/site-index-search?search=capit...

And you did all this from Canada? LOL

You expect us to believe you bought a $450 property in Arkansas from Canada and flipped it? I'm not playing.

Long term Cap gains are for assets held over a year.

Yes, you would have to pay US Federal income tax on capital gains as well as Arkansas tax on the gain.

To pay the IRS you would fill out a 1040 like the rest of us.