Hello!
I lived until a few years ago in the US (not a citizen) and now live in Canada.
I had bought and now rent a condo in the US for which I file US taxes: between costs and required depreciation, the US net income is $0 and don't pay any taxes currently.
In my canadian tax return, depreciation is not included when reporting foreign rental income (as far as I understand, been using HR block premier to help filing), and therefore the net US income is non-zero, for which I need to pay taxes in Canada, but cannot claim any tax credit because didn't pay any taxes in the US. How can I avoid double taxation?
Can I simply report $0 foreign rental income somehow and not have to worry in Canada? Or its more complicated: my understanding so far is that I could claim CCA as the equivalent of depreciation, and when selling the condo in the US, will pay taxes in the US and recapture in Canada, but be able to then claim foreign tax credit in Canada to compensate that recapture.
Taxes both seems to make sense and no sense at the same time... Appreciate any clarification, thank you!
Gary
I lived until a few years ago in the US (not a citizen) and now live in Canada.
I had bought and now rent a condo in the US for which I file US taxes: between costs and required depreciation, the US net income is $0 and don't pay any taxes currently.
In my canadian tax return, depreciation is not included when reporting foreign rental income (as far as I understand, been using HR block premier to help filing), and therefore the net US income is non-zero, for which I need to pay taxes in Canada, but cannot claim any tax credit because didn't pay any taxes in the US. How can I avoid double taxation?
Can I simply report $0 foreign rental income somehow and not have to worry in Canada? Or its more complicated: my understanding so far is that I could claim CCA as the equivalent of depreciation, and when selling the condo in the US, will pay taxes in the US and recapture in Canada, but be able to then claim foreign tax credit in Canada to compensate that recapture.
Taxes both seems to make sense and no sense at the same time... Appreciate any clarification, thank you!
Gary