property tax paid in canada

shsamardar · Post by **shsamardar** » Sat Feb 25, 2006 4:50 pm

we have condo in canada and we rented that. there is monthly managment fee that is similar to home owners/association fee.

in usa, we want to report that rental as income.

1- Is home owner assosciation for rental property , an expense that we can deduct it in Scedule E?
2- property tax that we paid to vancouver city , will it be an expense in schedule E or we can get tax credit for that ( like foreign tax credit )?

what is your wisely advice please?

Sincerely

Sun Feb 26, 2006 3:09 pm

You can list all expenses on your schedule E which are related to earning the rental income. This includes realty taxes, assn. dues, interest, insurance, maintenance or strata fees, and even a trip to view the property.

You must also complete a sec 216 return in Canada, claiming the same income and expenses.

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

canadian · Post by **canadian** » Tue Feb 28, 2006 12:49 am

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,

shsamardar · Post by **shsamardar** » Sat Mar 04, 2006 1:55 pm

Hi Mark

what is the basis of depreciation of property for condos ? is land and building or only land?
if I had my property for 4 years and now I am renting that, what is the basis for cost?

If I start depreciating of condo rental, what are tax pros-cons when we want to sell it?

Thanks