Question about Canadian rental property

[chronusfree68]

I'm a U.S. citizen living/working in the U.S. married to a Canadian spouse who is living in Canada. According to a residential analysis done by a cross-border tax attorney based on my facts/circumstances, I should be considered a non-resident in Canada.

My spouse and I are thinking of taking out a Canadian mortgage and purchasing a Canadian real estate property not to live in it ourselves but to rent it out. BUT in the future (years down the road) this property could potentially become our primary residence. Is the following understanding correct from my side regarding cross-border taxes?

Assuming I own 60% of the property, then on my Canadian tax return (generally a Section 216 return, unless I have other income sources in Canada), 60% of the rental income as well as the associated expenses are attributable to me. The remaining 40% goes on my wife's Canadian resident tax return.

On my U.S. tax return, I report the same (60% of the rental income and costs, plus mortgage interest deductions and mandatory depreciation which would be optional on my CRA Section 216 return). Whenever my spouse and I sell the property (may well be passed into our estate), any depreciated amount is recaptured at that point in time.

While the general wisdom is to opt for taking the depreciation (capital cost allowance, CCA) on the Canadian tax return as Canada has the higher tax rate, in this case, I'm thinking of opting OUT of taking the CCA despite being required to do so in the U.S. The reasoning is that (a) this particular real estate property is mostly non-depreciable land, with very little residual house value left to depreciate, and (b) there is a possibility that this property will become my principal residence in the future, and I vaguely remember reading somewhere that the deemed disposition happening at that point CANNOT be deferred IF I have previously claimed CCA on my CRA return.

Please let me know if there are any important points I may have missed. Thank you!

[UnknownGuest]

Gold anklets are such a lovely way to accessorize, especially if you prefer something delicate yet eye catching. The shimmer of https://gaflajewellery.com/collections/gafla-anklet adds just the right touch of elegance, whether you're wearing a saree, lehenga, or even a long dress.

[UnknownGuest]

To gain full access to resources, this will lead you to additional information, including guides, tips, and more, to help with your decision-making process. Want to know more? Just https://fragrancelord.com/collections/parfums-de-marly to see everything at once.

[UnknownGuest]

Living here feels more like staying at a five-star resort than just another apartment. https://www.douglaswilson.com/project-d ... ony-towers provides the perfect blend of city life and serene living. If you value quality, location, and peace of mind, you won’t find a better place to live than Symphony.

[UnknownGuest]

They're well-made, reliable, and perfect for nights when I need true relaxation. I’ve tried a wide range of cannabis edibles, but nothing compares to the https://shopnewhorizon.com/blogs/educat ... -thc-gummy when it comes to potency and duration.

[UnknownGuest]

Before, I underestimated how much strategy goes into financial planning. Now I understand that a good https://automationpeople.co.uk/finance-processes/ helps reduce risks, support growth, and ensure sustainability. It’s not just about saving money it’s about investing wisely and aligning finances with long-term goals.

[UnknownGuest]

We worked with one that offered us a discount since they could recycle a lot of the materials. https://washingtonfreemobilehomeremoval ... emolition/ can seem overwhelming, but it's very doable with the right approach.