If one permanently moves back to Canada (CDN resident) and receives a 1099-C several years later due to debt forgiveness.
1) Will you need to include it as income for CRA ON CDN side?
2) Will you need to file 1040-NR on US side?
Thanks,
Search found 23 matches
- Thu Jan 26, 2023 5:18 am
- Forum: Canada / United States Tax & Accounting
- Topic: Receiving 1099-C as CDN resident
- Replies: 1
- Views: 862
- Tue Oct 18, 2022 4:19 pm
- Forum: Canada / United States Tax & Accounting
- Topic: IRS has not processed 1040NR resulting in inability to claim foreign tax credit
- Replies: 10
- Views: 11442
Re: IRS has not processed 1040NR resulting in inability to claim foreign tax credit
Is this for 2020 1040NR or 2021 1040NR? I still have not received refund for paper filed 2020 1040 NR. IRS did receive it but paused refund. Am still waiting.
- Tue Sep 27, 2022 4:43 pm
- Forum: Canada / United States Tax & Accounting
- Topic: TN moving back to Canada. Tax Question
- Replies: 16
- Views: 16413
Re: TN moving back to Canada. Tax Question
In Canada, when you leave the country permanently, you have to indicate on your final return your departure date, that's how CRA knows you are becoming an emigrant. May I ask how do you do that with the IRS if one chooses to file a full-year 1040 (taking advantage of standard deductions) for their l...
- Mon May 02, 2022 5:31 pm
- Forum: Canada / United States Tax & Accounting
- Topic: US residents having Canadian rental property
- Replies: 6
- Views: 1877
Re: US residents having Canadian rental property
That makes sense. Thanks very much. I think I will claim CCA on section 216 return for year 2022 and going forward (not retroactively). BTW, this is allowed, right? Because I see that you can claim any amount of CCA you'd like, from zero to the maximum allowed for the year. It will be too much work ...
- Mon May 02, 2022 12:54 pm
- Forum: Canada / United States Tax & Accounting
- Topic: US residents having Canadian rental property
- Replies: 6
- Views: 1877
Re: US residents having Canadian rental property
Thanks Nelsona. I didn't complete form 1116 on my US return because I figure I will never be able to use the FTC anyways based on the reason you said. On Canadian side, I didn't take CCA because I view it as a "pay tax now" or "pay tax later" situation. Because if I sell the Cana...
- Mon May 02, 2022 4:18 am
- Forum: Canada / United States Tax & Accounting
- Topic: US residents having Canadian rental property
- Replies: 6
- Views: 1877
Re: US residents having Canadian rental property
Sorry, I meant to say "Because the FTC can only be used to reduce the TAX for rental income to zero on US return, and it cannot be used to offset the tax from other income sources like salary." In other words, you can’t take a credit for more than your U.S. tax on the rental income after d...
- Mon May 02, 2022 4:06 am
- Forum: Canada / United States Tax & Accounting
- Topic: US residents having Canadian rental property
- Replies: 6
- Views: 1877
US residents having Canadian rental property
I am a US resident and filed section 216 return with CRA and the tax amount computed on the Canadian rental was around $2300 CAD. I didn't take depreciation on Canadian side since I don't want to deal with recapture of CCA down the road when I move back and sell. On US side, after taking depreciatio...
- Tue Dec 21, 2021 9:29 am
- Forum: Canada / United States Tax & Accounting
- Topic: Being a lease co-signer and Canadian residency
- Replies: 1
- Views: 768
Being a lease co-signer and Canadian residency
I am a Canadian living and working in the US since Jan 1 2021, hence a US resident. I may have to co-sign for a relative on a lease in Ontario, but I don't actually live there. Will this make me a Canadian resident? My understanding is no because I am living and working in the US, which will render ...
- Mon Dec 06, 2021 3:48 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Foreign Tax Credits
- Replies: 2
- Views: 1154
Re: Foreign Tax Credits
Did you just receive the CRA review letter in December?
- Sun Jul 04, 2021 4:28 am
- Forum: Canada / United States Tax & Accounting
- Topic: How to calculate capital gains on Canadian Rental Property ("plus 1" formula or FMV method?)
- Replies: 0
- Views: 10650
How to calculate capital gains on Canadian Rental Property ("plus 1" formula or FMV method?)
I bought my principal residence in 2018 when I was a resident of Canada. In 2021, it was turned into a rental property (I did not and don't plan to claim CCA). I have also left Canada in 2021 and became a non-resident (am a US resident). I plan to move back into this property in the future once I mo...
- Fri Jun 25, 2021 4:33 am
- Forum: Canada / United States Tax & Accounting
- Topic: Capital gain tax on deemed disposition returning to Canada
- Replies: 4
- Views: 1909
Re: Capital gain tax on deemed disposition returning to Canada
Since you will return to Canada and become a resident, 45(3) will be made when you are resident? You are not a non-resident anymore once you return and use it as principal residence. Btw, is it hard to get a mortgage on the property as a non-resident? I am a non-resident too, and am looking for an i...
- Fri Feb 12, 2021 6:47 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Principal residence exemption when moving in and out of Canada
- Replies: 5
- Views: 2196
Re: Principal residence exemption when moving in and out of Canada
1) oh interesting. you mean you won't even bother with 45(2) to begin with? Is it because "a home would be considered your PR if it has been ordinarily inhabited by you and your family AT ANY TIME during the calendar year."? For me, the home was my PR until the end of March 2020 before it ...
- Fri Feb 12, 2021 3:06 am
- Forum: Canada / United States Tax & Accounting
- Topic: Principal residence exemption when moving in and out of Canada
- Replies: 5
- Views: 2196
Re: Principal residence exemption when moving in and out of Canada
Thanks nelsona. is there a way to get around this? such as not claiming CCA for the Canadian rental property on my Canadian 216 return while I am a US resident.
- Thu Feb 11, 2021 4:49 am
- Forum: Canada / United States Tax & Accounting
- Topic: Principal residence exemption when moving in and out of Canada
- Replies: 5
- Views: 2196
Principal residence exemption when moving in and out of Canada
I departed Canada on Jan 1st, 2021 and became a US resident on the same day. I am a little confused about the tax implications of my property in Canada. Your advise is greatly appreciated! Background: I acquired the property back in October 2018 and it has been my principal residence from then to Ma...
- Mon Dec 28, 2020 9:58 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Help needed urgently!!!! U.S. citizen working remotely from Canada for a U.S. firm
- Replies: 15
- Views: 6387
Re: Help needed urgently!!!! U.S. citizen working remotely from Canada for a U.S. firm
Thanks, nelsona. Just wondering if one works remotely for a US employer from Canada in this case and they paid into US social security tax, will they get a refund back for the social security tax? I have been told that since the income is Canadian sourced, social security tax can't be claimed back s...