The Globe and Mail reports in its Wednesday edition that the Trump administration's tariff war and threats to make Canada the 51st state have some Canadians considering selling their U.S. property. The Globe's Brenda Bouw writes that advisers say rising property values and a lower Canadian dollar are making the decision to sell even more attractive. However, there are tax considerations in selling U.S. real estate. Canadians who sell real property in the U.S. have to report the capital gain or loss in both Canada and the U.S. (and Canadians who are non-U.S. persons will be required to file a U.S. non-resident Alien Income Tax Return). In the U.S., capital gains are classified as short term or long term, and will have different tax treatments on the U.S. income tax return, says Nicole Ewing at TD Wealth in Ottawa. She says short-term gains for property owned for less than 12 months are taxed at the individual's marginal tax rate of up to 37 per cent while long-term gains are subject to a flat tax rate up to 20 per cent, depending on income. Ms. Ewing notes that the foreign tax credit can be used to avoid double taxation in the U.S. and Canada but only against other non-business income taxes payable on foreign income.