Serbinski Accounting Firms

The reason that you did not become a tax resident of US until June is because of the special tax treatment of f1 status, which exempts days spent in US from being counted towards SPT. Even tourists do not get that exemption, which prevented you from becoming tx resident YEARS ago (since you lived in...

That's fine. The point is to get the money in USD in Canada. Then transfer/wire/ carry, etc to a US bank.

You are considered a "deemed non-resident, and shpuld file a departure return with August departure date. CRA views becoming a resident of another treaty country (satisfying both IRS and treaty definitions) sufficient to "push" you out of canada, forcing you to file departure taxes, etc.

Your a good friend. Have your friend contact an accountant.

Could be.

You are correct that once you elect to use 6013(g) and the choose to revoke it, you will not be able to use it again. Just to be clear though, if she uses it as rental property she cannot claim it as principal residence for that time. So, not sure what exemption you would be claiming in future, eith...

a) you MUST depreciate her property for IRS. no option. b) the election is on a year-by-year basis. If it is not advantageous in that year, don't file with her. Will not need to recapture depreciation. c) I'm not sue the decision is irrevocable. I will check d) you cn ususlly have 2 principle reside...

They shpuld not be taxable, however, they do reduce your US tax, which may reduce your Foreign tax credit, if you have US income.

Ok. So they will pay the tax art departure. There is no way to avoid the CDn tax on the time when the American owned it. The deemed disposition would be an election, not mandatory.

So, as I said, she will still need to pay cap gains on the portion of the time the property was owned by the other spouse.

I have brain cells to think about, too.
Sorry.

Tell your friend that this may incur GIFT tax in US, since the spouse is not a USC, so is not entitled to a full spousal exemption. He would not have any Cdn cap gains tax to pay at time of transfer. However, the cost basis of the property would stay the same, so the spouse would be on the hook for ...

Did we really need 3 threads for your situation?

You will have to file a 216 return for 2019, along with your departure return. CRA wuill asses the penalty, so get moving, and also start the withholding now going forward.

You are attaching these to the RP. For IRS return, you efile and send no documentation. Even for papaer, you send minimal form (W-2, 1099-R).