If you own any U.S. property, Trump’s new “One Big, Beautiful” could cost you big time.

 

Why?

 

It could affect your returns or inflate your selling costs.

 

And that’s worrying more retirees than you might expect.

 

Here’s why this matters for Canadians:

 

Right now, when you sell U.S. property, 15% of the sale price is withheld for tax. But under the new bill, that could jump to 35%, more than double.

 

For Canadian retirees hoping to tap into the equity of their U.S. home, that creates a serious cash flow challenge.

 

Especially when the U.S. housing supply exceeds over $700 billion in listings, with mortgage rates still hovering near 7%.

 

But with this new surtax on foreign owners you could see sales drop and property values diminish.

 

And it doesn’t stop there.

 

On top of U.S. tax, Canadians also owe capital gains tax in Canada, which includes currency gains from a falling loonie.

 

Half of that gain is taxable federally, which usually results in a 24% to 27% hit - unless you’ve coordinated the right tax credits in advance.

 

And that’s assuming the rules remain fair.

 

Section 899 could override parts of the Canada-U.S. tax treaty, which would remove current protections for RRSPs or RRIFs from U.S. tax exposure.

 

Feeling overwhelmed? You’re not alone.

 

We hear this all the time from retirees:

 

“I spent my life saving… but now I don’t know how to protect it and I feel overwhelmed.”

 

And you're right to be concerned.

 

Because even if you recover some of the withheld taxes later, the cash flow loss at closing could derail important plans like relocation, home care, or estate planning.

 

What can you do about it?

 

Be proactive with your 2025 plans since these changes could take effect as early as 2026.

 

So if you’re thinking of selling in the next 12–24 months in Phoenix or Palm Springs you’ll want to get ahead.

 

Here's how you can stay in control:

1. Review your property timeline: Would it make more sense to sell before 2026, or hold off for better gains later?
2. Understand both tax systems: You may owe in both countries so make sure your plan integrates U.S. and Canadian capital gains rules and foreign tax credits.
3. Talk to a cross-border expert: Not every advisor has the tools for this. Look for someone who understands FIRPTA, tax treaties, and U.S. real estate strategy.

Need help?

 

At PKAG, we help retirees stress-test their cash flow with U.S. real estate in mind so tax changes don’t knock your retirement off course.

 

Join our next seminar or schedule a one-on-one to learn how to protect your U.S. holdings.