CCA / USA Depreciation Cost Basis for Canadian Rental Property

[rftx2]

Canadian currently in US.

Owned a condo in Canada that was my principal residence purchased in 2014.
Departed Canada to USA in March 2019. Filed Canadian departure taxes but wasn't able to rent out my condo at the time.
First Rented the condo out in June 2021.

First time reporting rental income in my USA taxes and filing a 216 with the Canadian side. Based on my reading it seems to make sense to claim Canadian CCA to match the US depreciation on rental property.

I am trying to figure out what the cost basis for depreciation is for both USA and Canadian side is it the FMV in 2019 (departure date) or 2021 when i first rented it out, or 2014 (purchase date)?

[nelsona]

In this caase, for both it is when you changed its use to rental.

[rftx2]

Thanks nelsona appreciate your responses across the forum they've helped me a lot in the past.

I've gone through the rental-income CRA guide and it has section on calculating capital cost when change of use occurs and that brought up a few questions in my mind:

1- Is there a deemed disposition arising from the change of use or does that not apply for non residents? Am I on the hook for any gains between 2019 (departure) and 2021 (rental).

2- Based on my understanding only the building part is depreciable. Is using the ratio (land/building) from my property taxes good enough to calculate here the building portion only?


Thanks

[nelsona]

1. As a non-resident you are not "invoking" the change of use rukes, since that properrty is no longer your principsl residence from the day you moved, you are simply changing its use. You will settle any gains when you actually sell or when you return to Canada and resume living in that property.
2. Sounds good.