Tax and other financial matters concerning Canadian professionals
in the U.S. and U.S. citizens in Canada Includes income and estate taxation, social security, health
insurance, retirement accounts, cross border tax issues, and other matters affecting your pocketbook.
Topic Administrator: Mark T. Serbinski, CA, CPA of Serbinski
Weinberg, Ltd. CPA's and Serbinski Partners, Chartered Accountants
I'm a Canadian citizen, US resident for about 7 years. Have 3 rental properties bought in Canada years before working in US (on renewed TNs).
Have depreciated the 3 properties every year as advised by US accoutants that if I don't - the IRS assumes you did anyway when you sell them.
I've heard that once I return to Canada and break all ties to U.S. and become a non-US resident by the legal rules (ie: # days, etc.), then if I sell the properties, I don't have to pay back the depreciation taken on these properties for these 7 years as the depreciation is only for U.S. residents.
Is this correct?
Thx.
This is so, but not for the reason you give.
You will not have to re-capture depreciation for the simple fact that you will not have to report the sale to IRS, if you are not living in US, and not a US Citizen at the time of sale.
IRS would only have you re-capture deprecition in the year you report the sale (ie. adjust your cost basis); if you wait until after you leave US, you never will have to report it.
Tax and other financial matters concerning Canadian professionals
in the U.S. and U.S. citizens in Canada Includes income and estate taxation, social security, health
insurance, retirement accounts, cross border tax issues, and other matters affecting your pocketbook.
Topic Administrator: Mark T. Serbinski, CA, CPA of Serbinski
Weinberg, Ltd. CPA's and Serbinski Partners, Chartered Accountants
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