This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
My wife and I live and work in Canada and file separate 1040-NR returns to report income from a jointly owned rental property in U.S. I report a small amount of U.S sourced income for work done while physically present in U.S. My wife has no U.S sourced employment income (no trips, no visa..nada).
Wondering if I can claim an exemption for her on my 1040-NR return? 7b states "Check box 7b only if you checked box 3....and your spouse did not have any U.S gross income".
This might be a dumb question, but is her U.S rental income considered "gross income" for purposes of my claiming the spouse exemption?
Correct. Also, she indeed HAS US-source income: the rental income.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best