We own a property in the States. I know that depreciation must be claim on that property with IRS, it's not the matter of your choice like in Canada. My question is how to claim that on my tax return using the US rules or using Canadian rules (Capital Cost Allowance)? I hope someone has the previous experience with that.
Claiming depreciation on US property with CRA
- Thread starter MT1980
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It is similar to Canada
It is similar to Canada
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Canadian income tax act must be followed when preparing Canadian income tax return.
You can only claim CCA on rental schedule if you have net rental income not loss, you can't create loss by claiming CCA.
All the income and expenses from US rental schedule will be reported on Canadian return except depreciation claimed on US return.
You can claim the foreign tax credits on Canadian taxes for any US taxes paid on your US state and federal returns.
You will have to average US exchange rate for the year for conversion.
Please file T1135 if you property is valued at over $100,000 Canadian $.
I'm a CPA, CGA in Edmonton and I've a few clients who own properties in US.
You can only claim CCA on rental schedule if you have net rental income not loss, you can't create loss by claiming CCA.
All the income and expenses from US rental schedule will be reported on Canadian return except depreciation claimed on US return.
You can claim the foreign tax credits on Canadian taxes for any US taxes paid on your US state and federal returns.
You will have to average US exchange rate for the year for conversion.
Please file T1135 if you property is valued at over $100,000 Canadian $.
I'm a CPA, CGA in Edmonton and I've a few clients who own properties in US.