Even as a Canadian resident if you own property in the U.S. ― a vacation home in Florida, a ski chalet in Idaho or U.S. securities ― you may be subject to U.S. estate tax at the time of your death.
U.S. estate tax is applied at graduated rates to the value of the individual's taxable estate upon their death. The same rates apply whether the individual is a U.S. citizen, a U.S. resident, or a non-resident of the U.S. The difference is that for non-residents, only the value of property with a U.S. location or connection is included in calculating the estate that is subject to the tax.
There are U.S. estate tax issues that Canadian residents should take into consideration when they own, or are considering buying U.S. property. Read our tax bulletin titled U.S. Estate Tax Issues for Canadians for an overview on how the U.S. estate tax applies and issues to consider.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of July 9, 2018.