US citizen living in Canada with US rental properties

[Mimo]

I’m a US citizen who moved to Canada In aug 2020 after marrying a Canadian citizen.
I filed my US taxes for 2020 but not my Canadian ones yet.
My income in 2020 was from my job in the US before moving to canada plus rental income. Rental property is shared with US family member at 50%. After I moved to Canada the only income I had was from the US rental (and no income in Canada). I also pay tuition fees. The rental income was negative (loss)
Since I’m new immigrant to Canada in 2020, i read i don’t have to complete T1135 first year (I can acknowledge having properties over 100k though)
Do I need to file my CDN taxes? My income after arriving to Canada will be zero (since no job plus negative rental income). If I have to file with zero income, do I need form t677 and how to report that rental income is split with a US family member?

[Mimo]

Sorry meant form t776

[nelsona]

You should file to establish your self, and so that your spouse can claim any benefits derived from you.
If you have rental INCOME, you need to prove that your EXPENSES reduce it, thus the need to file a tax return and form T776

[Mimo]

Just to clarify:
I need to file this T776 form even though I already filed the rental income to IRS and the fact that it’s negative?

Why am I reporting this income twice (yet it’s a loss)

[nelsona]

You are reporting it because you are a US citizen living in Canada. You will ALWAYS have to file two returns reporting world income on both returns.

[Mimo]

I’m preparing my T776 and I have a question please.
My US return has a ‘depreciation expense or depletion’. Do I need to declare this value on my cad return? If so, where?
Note that because I’m a newcomer I’m not filing my T1135 this year, so I’m not yet going through current market value of my property

[nelsona]

In Canada deprecation is known as CCA capital cost allowance.

In US you should depreciate (if you do't the IRS will still tax the depreciation when you sell. You *can* depreciate in Canada, but are not obliged to. You might choose to do this is you are in a negative net rental in US (due to depreciation) but positive in Canada (before using CCA).

One should try to "match" the rental incomes in both countries, for foreign tax credit purposes.

You keep referring to T1135. Whether you file this form or not has NOTHING to do with your rental income, or the value of your rental. Your rental has a value the day you moved. You must determine this value and will use it throughout your time in Canada,