canada dependents

rg1495 · Post by **rg1495** » Wed Jul 19, 2006 12:10 am

Hi, I plan to move to US but continue to support my parents who live in Canada. I pay for their rent + all living expenses. So, basically I will pay rent for 2 apartments. I was wondering if I could claim my parents expenses on my taxes ? I already claim them on my taxes as dependents (they have their ITI ). I need to know if I can claim the entire rent + living expense on my taxes ?

Any help would be highly appreciated.

nelsona · Post by **nelsona** » Wed Jul 19, 2006 8:15 am

ususer · Post by **ususer** » Wed Jul 19, 2006 11:02 am

How about supporting a boyfriend/girlfriend who is here in US on a student visa? (Sponsoring his education and living expenses)

nelsona · Post by **nelsona** » Wed Jul 19, 2006 12:34 pm

No. They would not even be dependants.

rg1495 · Post by **rg1495** » Mon Jul 24, 2006 9:50 am

What if I bought a house for them and paid the mortgage + property taxes....could I claim the mortgage interest + property taxes as itemized deductions in my US taxes (assuming I live in the US).......If yes, does that mean I cannot claim their standard deductions (3200 x 2) ?

thanks

nelsona · Post by **nelsona** » Mon Jul 24, 2006 10:59 am

They would still be your dependants. You simply wouldn't be able to use the money you pay for the house in determining whether or not you meet the support test.

You can always claim the mortgage interst and property taxes on this 'second home', so long as it is yours.

rg1495 · Post by **rg1495** » Mon Jul 24, 2006 3:43 pm

Ok I am a lil confused here.......they have zero income.....so I take care of all their expenses.....how does that violate the support test?.......can I claim them as std deductions as well as itemize the mortgage interest + property tax?......Is it OK if I live in an apt in US while own the house in Canada in my name jointly with my dad?....but then wouldn't that mean I have ties in canada which means I will have to pay Cdn taxes?

nelsona · Post by **nelsona** » Mon Jul 24, 2006 4:01 pm

I didn't say it would 'violate' the support test, I simply said that if the mortgage interst that you pay and property tax that you pay would not be considered an expense that you are paying on their behalf -- you would be paying it on your behalf -- otherwise you would be considered to be renting out the house to them, which would make your property renatl property.

you may or may not want this to be rental property.

If you support them in all other ways, fine!

As I said, you can always itemize the interest and property taxes on this HOME, whether or not you own another HOME, because IRS allows you to have 2 HOMES.

If you co-owned with your father, then probbaly only half the expenses would be deductible in your name, so that would not be wise.

Owning a home in Canada, so long as you work and live in US, does not make you a Cdn tax resident.