Rental Property in United States (US) Foreign Rental Property

Facts of the Case :-

  1. Property in United States
  2. Till 2017 Property was solely used for Personal Use
  3. 2018 due to health issues, client couldn't use the property personally hence rented it out for 7 months
  4. US tax return is already filed and it shows loss after taking into account depreciation on the property
  5. For 2019 and onward intends to use it primarily for personal use but also rent it out for few months 4-5 

Question :-

  • Do he needs to file T1135 in 2018?
  • Can he stop filing T1135 for 2019 tax years and onward when the property is primarily used for personal use?
  • For Rental Income T776 - should we also claim depreciation to match with US tax return and if we do so should we claim the exact same US amount converted into CAD or through CCA table using CRA Depreciation Rates. 
  • For T1135 - what is Individual Code? and Income from all specified property should show Gross Rents or Net Rents.

Thanks a lot and your response is much appreciated

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: