Canadian Citizen returning to Canada, renting out US Condo

[mmajeau]

Hello,
I am returning to Canada with a company who has a Canadian equivalent with it's own HR so that is the easy part. I can be converted so it coincides with the US/Canadian tax years so there is no overlap and won't be required to file 2 returns. However, I will also continue to pay my US mortgage and leasing out a condo to tenants in the US. I would still like to claim the mortgage interest on my taxes as well as the condo fees I'm paying on behalf of the renter. Would I have to file both Canadian and US taxes, and would I still get the tax deduction without earning any US income? There is no mortgage interest tax credit in the Canadian tax system, although I might still qualify for a condo fee tax credit as a landlord. I do have a valid E2 work visa which will be valid for a few years, if that helps me out at all. As you can see, I'll need a serious tax accountant! Thanks.

[nelsona]

Clarify for me. Do you have one property in US or two. Unclear from your post.

Does your keyboard have an enter key? Please use it.

[mmajeau]

Sorry for the confusion.

- I am a Canadian citizen working in the US on an E2 visa
- I am moving to Canada by the end of the year
- I am renting out my condo in the US, while I'll be living in Canada
- I am assuming that I will not be able to get the mortgage interest tax credit, since I will no longer working in the US, hence not filing a US return?
- Will I be able to claim the condo fees on either Canadian or US tax return?
- With a US mortgage, active US bank account, landlord income, etc., is there any reason for me to file a US return once working in Canada, therefore qualifying for some of the tax credits in the US not offered in Canada?
Thanks so much.
Mark

[nelsona]

Thanks.

Your condo, since it will be come a rental property, will now have all the expenses that usually come with having renatl property, both in US and canada, including mortgage interest.

You will be filing a 1040NR every yer in US to report ONLY the rental income and expenses. There is no need to report anything else, as you will no longer be US resident.

You will also report the same income and expenses on your Cdn returrn.

The only difference is that in US you MUST depreciate your property, while for Cdn taxes it is optional.

Once you determin the US tax you owe, you can then use this on your Cdn return as a foreign tax credit.