Deemed disposition

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
mtnman
Posts: 37
Joined: Thu Nov 15, 2012 2:06 pm
Location: Lethbridge, Ab

Deemed disposition

Post by mtnman »

In the US if one has a rental home which becomes a vacation property for personal use is there a deemed disposition as there would be in Canada ?

Thanks
Top
nelsona
Posts: 18353
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

There is no immediate deemed disposition for IRS puposes on change of use. This pllies regardless if the home becomes your first or second home.

However, when selling the property down the road, one will not be able to fully exempt the cap gains, requiring at a minimum to recapture depreciation that was taken while a rental property.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Top
Post Reply

Return to “Canada / United States Tax & Accounting”