Hi,
Do land transfer taxes paid upon purchase of a property in Canada count as "real estate taxes" for line 6 on form 1040 (assuming a full-year return)? It is an amount paid based on assessed value of property and subject to everyone purchasing homes -- but it seems too good to be true if this was allowed?
I assume that foreign property taxes are deductable, since that seems quite clear in the 1040 instructions.
Great site btw -- I'm planning my move back to Canada this year, and this group has been a gem.
- Paul
Treatment of Land Transfer Taxes!
Moderator: Mark T Serbinski CA CPA
Thnaks for answering your own question.
You will still probably file a 1040 for your departure year. Remember that you can always use 2555 and 1116 to handle your Cdn wages/income and tax, and still get the benefit of full 1040.
You will still probably file a 1040 for your departure year. Remember that you can always use 2555 and 1116 to handle your Cdn wages/income and tax, and still get the benefit of full 1040.
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Thanks to this site, I'm aware of using form 2555. One complication to going with a full-year MFJ 1040 filing is that I have some securities I was planning on selling once I ceased residency, though I am looking into deferring those sales into 2012.
I'll have some more questions related to my situation that I'll post in a suitably titled posting shortly.
Thanks,
Paul
I'll have some more questions related to my situation that I'll post in a suitably titled posting shortly.
Thanks,
Paul
Yes, it would be good to take advantage of the fact that once no longer resident in US (not filing 1040), your gains would no longer be reportable.
Be sure to review (and sell) your losers before leaving.
Be sure to review (and sell) your losers before leaving.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing