Escrow EB5 500K investment and IRS

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nisusavi
Posts: 2
Joined: Fri Oct 12, 2018 6:56 pm

Escrow EB5 500K investment and IRS

Post by nisusavi »

Hi All,
Good day. Background: I recently moved from Canada to US and I will be filing my Canadian taxes with CRA as resident and as non resident in the US federal and state for 2018 and vice versa for 2019. In Apr 2017, I took a home equity line of credit from my principal home and invested 500K US (approx 700K CAD) in a Escrow account on a US project and filed my US immigration application under investment category. So my question is: 1) Is FBAR back dated or only for current year 2) When I receive the money back after a few years, there are 2 possibilities: a) I either still own my principal home or b) I have sold it. In case of 2 b, I have lived longer than 2 years in my principal home and I understand there should be no capital gains. So for 2 a, how is it treated by IRS? Is it again an outstanding debt on my home and hence no tax implications there? Should I declare this anywhere else?

Thanks in advance for your assistance.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: Escrow EB5 500K investment and IRS

Post by nelsona »

First off, CRA residency is not based on the calendar year. You cease being a resident, and become an emigrant on the day you leave. Your departure date was in the past.

FBAR requirement begins the year you file a full 1040, which could be 2018, or 2019 depending on how your choose to file in US.

The debt on your home has no bearing on the gains you might make.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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