Serbinski Accounting Firms

Thanks for clarifying. Do I pay the taxes on the depreciation recapture to the US, then claim it on my Canada tax return as part of foreign taxes paid?

Wait - which is correct: that I do need to figure it all now and pay taxes on it, or that there is nothing to recapture? Thanks.

So my question is: the IRS Pub. says depreciation I "claimed or could have claimed". So if I didn't claim it, then do I need to figure it all now and pay taxes on it? Or, is there now nothing to recapture, since I never claimed a loss from depreciation in the first place?

I showed a loss every year because the money we were paid for rent was so much less than what we paid every month in expenses on the property. I never showed a loss due to depreciation, and never claimed any depreciation.

Thanks for clarifying that. I had a US tax lawyer tell me I didn't have to report it, and a CAN CPA tell me I didn't have to report it. But when I looked into it myself, I got confused and thought I would ask just to be sure. I am a do-it-yourselfer, and i have no idea what depreciation recapture is ...

We moved to CAN in 2008 and finally sold our primary residence in the US in 2011. I think we meet the US tests for not having to report the sale on our US tax return. However it is a little confusing in Pub. 523, because even though we meet all the tests for not having to report the sale, we still ...

Just to clarify: "meals" means meals while he is traveling to and from the site, or also meals he has when there?

Hi - My husband is a Canadian PR - we live in Canada. Two to three times each year, we travel to an extremely remote site in Alaska so he can work at a medical clinic that serves a transient village of 200 people. He is considered self-employed. Can we deduct on T2125:
- expenses for his food while ...

I am a dual US/Canadian citizen living in Canada with my PR spouse. My husband made all of our money in Alaska last year and we were there for most of the year.
I am filling out 2 T1 forms for Canada. Then I am filling out a US 1040.
I am then going back and claiming a foreign tax credit on my ...

One more thing:

We do not have any foreign tax credits from our Canadian return for our US return, because we have no foreign income (rental was a loss this year). SO, I cannot fill out a form 1116, but I still have to pay taxes to Canada. Do you know what line I might be able to claim this on, on ...

Hi. Thanks very much for your reply.

Were you able to tell exactly what you did wrong from what your preparer did? I am not exactly a first timer since I have filed our taxes in Canada and the US for 3 years now, it is just a slightly different scenario this time. I am familiar with the other ins ...

hi lanman -

i realize this is an old thread but wondering if you can help me. i am in the same situation as you, with the back-and-forth foreign tax credits causing an endless loop. i think i understand what i need to do now base on nelsona's replies to you, but i would like to know how it all ...