CCA vs IRS Depreciation Rate on CDN Rental

[hello3520]

I have moved to the US in 2013.

I have a rental property in Canada that I previously made an election under 45(2) to treat it as my primary residence. I can't keep the 45(2) election since I am a non-resident.

I am getting a FMV assessment of the property so that I can declare the deemed disposition for when I left Canada in 2013 and use the deemed FMV under the tax treaty as the point to start depreciation in the US.

I am going to start claiming CCA on the property in Canada as I am uncertain if we are going to return or not.

Can I claim a lower CCA amount then 4% (25 years) when I file my Canadian Taxes? I would rather match the CCA to the depreciation used by the IRS and depreciate on both sides of the border by the same amount of 2.5% (40 years).

Am I overthinking this?

[nelsona]

Since you must depreciate in US, depreciating in Canada is a good idea, since you want to match the tax. You can always use a lower CCA than the maximum, since it is optional. In fact you can't use more CCA than what lowers your net rental income to zero.