Canadian Seller / Fees

[luvlivn]

What i understand in selling DVC through resale channels is that as a Canadian seller there is a 15% fee to be paid to US as a foreign seller (FIRPTA), commission to DVC timeshare brokerage and a fee to Disney $150 what i am wondering is if there are any rules or exceptions that i may be missing?

 

[supersnoop]

As a foreigner, the U.S. government requires that 15% of the sales price be withheld to cover any applicable taxes. You can file a tax return to have that money returned based on your tax liability.

 

[MoreTravels]

Once you file an IRS application, you are subject to their rules and your worldwide income will be calculated to see if you are eligible for refund. And your file is part of American database.

I would rather give up that 15% then to sign myself up with IRS.

 

[pangyal]

We have sold a few contracts and have paid $350 to a US accountant who files for a FIRPTA exemption waiver from the IRS, so that 15% is not withheld. The only thing that would be withheld in this case would be 15% of the actual profit based on the original buying price and then the subsequent selling price.

 

[supersnoop]

Once you file an IRS application, you are subject to their rules and your worldwide income will be calculated to see if you are eligible for refund. And your file is part of American database.

I would rather give up that 15% then to sign myself up with IRS.

That's not quite how it works. Sale of property is a capital gain scenario. You're responsible for capital gains taxes (15%) on any profit. So, you need to establish your cost basis to see if you've even made any profit. Filling out the paperwork could save you $3,000, depending on the sales price and your basis.

The IRS only collects taxes based on income generated inside the USA, and foreign income above a certain threshold ($180k+?) earned by US citizens. If you aren't a citizen and you aren't earning money inside the nation, there's no reason not to file.