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Loans made before departure through the CDN gov. He never informed me of their existence the last three years despite my query. Now the he has returned, I can either amend the US return or use them as carryforwards in Canada (if possible). I would prefer to do the later based on %tax savings.
I intend to do both but I needed to clarify the possibility of a carryforward even though the interest was paid during non-residency. I could not find anything that addressed that scenario.
Thanks
You said: "I can either amend the US return or use them as carryforwards in Canada (if possible). I would prefer to do the later based on %tax savings".
You then said: "I intend to do both".
Doesn't quite jive. Or are you using the Cintonesque definition of the word 'or'.
At any rate, the CRA wording is pretty clear: "...the interest you, or a person related to you, paid on that loan in 2007 and/or the preceding five years. ...
You can claim an amount only for interest you have not previously claimed."
Since it is not a use it or lose it deduction, nor is there a yearly form to fill out to track this interest, simply having the receipts for the past 3 years (CRA will know if any was claimed) will do the trick.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing