Canada rental property and 1040 depreciation

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
Livonian
Posts: 29
Joined: Sat Sep 12, 2009 9:26 pm

Canada rental property and 1040 depreciation

Post by Livonian »

Can a previously bought Canadian rental property cost be revised to include costs below to be added to purchase price?
Land transfer tax
CMHC insurance due to less than 20 % down payment
Lawyer fees
Closing costs
Renovation done in previous years after buying property but while resident of Canada and before moving to US.

Once Canadian property cost is finalized, does it needs to be converted to USD from exchange rate on the day of US residency beginning and frozen for depreciation purpose for future so that 1/27.5 part is shown as expense for next 27.5 years?
Livonian
Posts: 29
Joined: Sat Sep 12, 2009 9:26 pm

Post by Livonian »

I missed one.
Is painting expenses for preparing for renting considered as revenue expenditure for that year or needs to capitalized?
nelsona
Posts: 18678
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Publication 946. If you find out let me know.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Post Reply