Serbinski Accounting Firms

Hello,
I am resident of US and nonresident of Canada.
I had a house in Canada. It was my main home for 1 year and then I rented it out from May 2005 until July 2007. I sold it in November 2007.
For the time from July 2007 to November 2007 I lived in this house preparing it for sale and had some ...

Hello

I bought my house in Canada in November 2003. I was resident of Canada that time, and the house was my principal residence.
In November 2004 I have moved to USA as I got lay off from my employer in Canada and have found another job in USA.
January 2005 I become a resident of USA and since ...

Hi nelsona,

Quote:
"When you left Canada, your home ceased to be your pricipal residence, but CRA gives you one more year as a bonus in calculating your taxable gain, so you are on the hook for about 18 months worth of the total time you owned the house: 45 months."

Yes, you right if you take the acquisition date as a date when we first time purchased the house.
But I assume that as acquisition date I have to use the date when the change of use of my house happened, i.e. when we stopped using it as our primary residence and started renting it out. And it drops down the total time I owned the property from 45 months to 32.
In this case, if we use years to calculate the tax on capital gain we have to pay CRA, it gives us $0 to pay.

So my question is:
In T2091 CRA defines the ‘acquisition date’ as ‘the date on which you last acquired or reacquired the property’. The change of use considered as the reacquisition in Canada. So am I right by taking the change of use date instead of the date we have bought the house in my calculations?

Quote:
“You also owe on the depreciation you should gave climed on your US returns in the past 3 years.â€￾

Yeah, you right. The only question I have is: do I have to use 27.5 years depreciation period or I must use 40 years? And why?

thanks,

Hi there,

Currently my wife and I are residents for a tax purpose in USA. But we still owe the house in Canada. Before we come to USA we lived in this house for 15 month, it was our primary residence. And now we are renting it out for more then 2.5 years. We are about to sell this house. I ...

Hi everybody,

I'm needed your advices or any thoughts you might have.
Here is the situation. I'm currently in the states. Though I didn't have any income in Canada for 2005 I had to fill in Income Tax for CRA because of I was tax resident until January 18.
So I sent CRA all the documents including ...

Note: For U.S. purposes, you MUST depreciate the property

Good, but what should be taken as a basis for depreciation?
Shall I take the cost of the house on the time I bought it, or I shall take its cost on the day I've become US resident?

thanks,

Hi there,

I am very confused by the answers I have received this morning from CRA help line.
I am non-resident of Canada since January 2005. I have a house in Canada.
For the first 4 months in 2005 the house was on the market available for rent. After that we signed off the lease for 1 year.
So my ...

Hi there,

I was a resident of Canada only for January 2005 and resident of US for the entire 2005.
I have unpaid amount under Canada's HBP. According to "Emigrants and Income Tax guide" I should include unpaid amount in my income for the year I emigrated.

My question is:
Do I have to include ...

Hello everybody,

I am a resident of US for entire 2005 and non-resident for Canada from January 19, 2005 (departure date). I had RRSP and did not make any contribution for 2005.
In July 2005 I cashed out all my RRSP account, no balance left.

Would you help me out with the questions I have, please ...

Thanks, nelsona.

Good morning, nelsona.
Thank you very much for the update.
Yeah you right, it did make sense for me to fill in my 2004 return as a tax non-resident for CRA, but now it is hard to correct. So I’ll just send CRA T1-adj form together with check. Hopefully penalty will not be huge.

As for the ‘house ...

Actualy I guess I found the answer [8D].
I can file in my income for CRA as a tax resident of Canada until the mid of January 2005, and as a tax deemed non-resident or non-resident(I still cannot be 100% sure who I am for CRA) of Canada until the end of the year.
At the same time I'll file in my ...

Hi nelsona,

I wish to be a non-resident for Canada starting 2004, but unfortunately I cannot as even if I moved to the states in November 2004, my wife was still staying in Canada untill mid of January 2005.
Also I had another ties with Canada(house, car, RRSP etc.)
So it seems that I cannot ...

Hi nelsona,

Thank you for the answer.
Unfortunately it seems that it is to late for me to send this correction form to CRA as they already informed me that they started ‘reviewing’ my file. And they requested all the documents from me in order to review the amount IRS refunded.
When I filled in my ...