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F1116 is for "Taxable Income or Loss From Sources Outside the United States".

It seems that the condo income doesn't fall into this category since it's in California. Do I get it wrong?

It seems 1116 only applies to foreign earned income, and it does not apply to my case.

I am thinking maybe I should report the deemed disposition gain on schedule D and offset it somewhere. Can you point me to the right place to offset the gain?

Thank you for the detailed reply.

By "report deemed dispositions and pay tax", you mean pay Canadian tax, right? I will report the deemed disposition on 1040 too. But if there is no offsetting, I will be double taxed. I am just wondering how the offsetting is done on the federal return. Is it ...

So for my 1040, I will report a sale of the rental on the date I left canada and immediately repurchase the condo at the FMV. I will also exclude the gains on deemed sales pursuant to Rev. Proc. 2010-19. Does this sound right to you?

As for the California 540 NR. The deemed sale and repurchase ...

Thanks a lot!

To get the tax credit for the Cdn taxes, do I file Form 1116 for 2015 or when I sell the property?

Thanks! Just to clarify. Only the property that I purchased after I moved to Canada would be subject to the exit tax since I was there less than five years, right? Say if I have another condo that was purchased before I moved to Canada. It is not subject to the exit tax, right?

Also how do I get a ...

Hi,

I am a US citizen. Moved to Canada in August 2010, got PR in 2011 and left Canada in June 2015. During my stay in Canada, I purchase a rental property in California. My question is for 2015 when I left Canada permanently, do I have to file T1163 and T1243 for this US rental property?

I will ...