Hi,
I am a Canadian resident with rental property in Nevada. I am wondering what I need to do to file my taxes in the US. Is it something I can do myself?
What needs to be done on my Canadian taxes?
If it is not something I can do myself, anyone know of a good and cheap firm that can complete it?
Canadian Resident with US Rental Property
Moderator: Mark T Serbinski CA CPA
NV does not have income tax, so there is no state forms to file.
For IRS, you need to file a 1040NR reporting the rent. This is basically the same process you will do in Canada: gross rent and deductions.
The one differnce is that you MUST depreciate your property for IRS purposes, while you have a choice to use CCA in canada.
Once you determine your US tax, use this ammount as the foreign tax credit on your Cdn and provincial tax returns/schedules. Any credit goes towrds the cdn tax on that specific income. Hopefully you will be able to use all the US tax on your Cdn return.
For IRS, you need to file a 1040NR reporting the rent. This is basically the same process you will do in Canada: gross rent and deductions.
The one differnce is that you MUST depreciate your property for IRS purposes, while you have a choice to use CCA in canada.
Once you determine your US tax, use this ammount as the foreign tax credit on your Cdn and provincial tax returns/schedules. Any credit goes towrds the cdn tax on that specific income. Hopefully you will be able to use all the US tax on your Cdn return.
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