Schedule E details on 1040 for Canada rental properties requires depreciation. To calculate house or asset price in USD, do we take Bank of Canada average exchange rate for 2009 or exchange rate on the day of purchase of house property?
Logically day of purchase exchange rate appears to be logical.
Currency exchange rate for house depreciation
Moderator: Mark T Serbinski CA CPA
Hello Nelsona,
Thanks.
I had bought house in Canada when US dollar was very strong which resulted in low purchase price in USD on 1040. The currency exchange rate alone will account over 50% of appreciation assuming no real appreciation when I sell rental property . Add to that depreciation claimed, it is likely to be large % capital gains if I decide to sell it in future.
Is it possible to convert this rental property as a vacation home for personal use- No rental at all- say for say 3 years and then sell it. Does this action then save on capital gains in US? Can I claim interest and property taxes on vacation home on 1040?
What about monthly condo charges for common elements paid for vacation home? Are these deductible?
Capital gains tax in Canada will be altogether a different story and I need to file return that year.
Thanks.
I had bought house in Canada when US dollar was very strong which resulted in low purchase price in USD on 1040. The currency exchange rate alone will account over 50% of appreciation assuming no real appreciation when I sell rental property . Add to that depreciation claimed, it is likely to be large % capital gains if I decide to sell it in future.
Is it possible to convert this rental property as a vacation home for personal use- No rental at all- say for say 3 years and then sell it. Does this action then save on capital gains in US? Can I claim interest and property taxes on vacation home on 1040?
What about monthly condo charges for common elements paid for vacation home? Are these deductible?
Capital gains tax in Canada will be altogether a different story and I need to file return that year.