Sorry, should have mentioned that I was referring to US real property which would be US sourced income even after moving to Canada.
Does Canada treat any of the installment sale payments after the disposition as taxable events?
Search found 4 matches
- Fri Jan 27, 2023 3:53 am
- Forum: Canada / United States Tax & Accounting
- Topic: Foreign Tax Deduction in US Dual-Status Return
- Replies: 6
- Views: 1219
- Thu Dec 29, 2022 2:06 am
- Forum: Canada / United States Tax & Accounting
- Topic: Foreign Tax Deduction in US Dual-Status Return
- Replies: 6
- Views: 1219
Re: Foreign Tax Deduction in US Dual-Status Return
Thank you for that explanation! Yes, I will prepare the return both ways to see which yields the lowest taxes. I am looking into an installment sale to defer enough of the capital gains to be under the NIIT threshold in the departure year and get some "free" capital gains at the 0% tax bra...
- Sun Dec 25, 2022 6:46 pm
- Forum: Canada / United States Tax & Accounting
- Topic: Foreign Tax Deduction in US Dual-Status Return
- Replies: 6
- Views: 1219
Re: Foreign Tax Deduction in US Dual-Status Return
Merry Christmas nelsona! Publication 519 says for dual-status residents: "You cannot use the standard deduction allowed on Form 1040 or 1040-SR. However, you can itemize any allowable deductions." But it does not clarify if deductions allowed for resident aliens are considered allowable de...
- Sun Dec 25, 2022 4:36 am
- Forum: Canada / United States Tax & Accounting
- Topic: Foreign Tax Deduction in US Dual-Status Return
- Replies: 6
- Views: 1219
Foreign Tax Deduction in US Dual-Status Return
If I file Form 1040 as a full-year resident, I can claim a foreign tax deduction on Schedule A line 6 as other taxes paid. If I file a dual-status tax return in the year that I give up my residence, the IRS wants Form 1040-NR to be filed with Form 1040 as a dual-status statement for the resident par...