Wrong depreciation method on US taxes for rental property

nelsona · Post by **nelsona** » Fri Mar 15, 2013 2:11 pm

Is it "correct",? Not exactly, we have already said that. I simply believe it is not worth going back at this point to correct it.

shsamardar · Post by **shsamardar** » Fri Mar 15, 2013 10:08 pm

Thank you Nelsona

what you are saying is exactly what I said: don't change the past, continue from depreciating but with 40 yrs instead of 27.5 method

Am I still not understanding your advice? if I a mworng, please correct my statement.

nelsona · Post by **nelsona** » Sat Mar 16, 2013 3:46 pm

I give up

shsamardar · Post by **shsamardar** » Sun Mar 17, 2013 7:32 pm

Well,
you replied previously

"I would not worry about this. Fix this years and move on. Since depreciation is recaptured at sale, you will simply have bigger recapture. "

what is fix mean? is fix mean ignore the past and continue with new lower value or fix means something else?

nelsona · Post by **nelsona** » Sun Mar 17, 2013 9:29 pm

Do you typically require 4 or 5 reaffirmations before yo uact on something?

JGCA · Post by **JGCA** » Mon Mar 18, 2013 10:03 am

Nelsona what would happen if a CND resident owning rental property in Canada moves to the US and stays in US say for many years takes depreciation on the US side but none on the CND as allowed then moves back to Canada years latter without selling the CND property does the US hit them with recapture and cap gain they have not actually dosposed of it.

nelsona · Post by **nelsona** » Mon Mar 18, 2013 10:39 am

No, unless the person is a USC or GC holder at the time of sale.

This the same as a Cdn resident moving to the US and acheiving unrealized capital gains, and then returns to canada. the gains are untaxed by US.

Same for defrred taxation of income from RRS. Cease beinga US taxpayer, and no tax is owed.

JGCA · Post by **JGCA** » Mon Mar 18, 2013 11:23 am

Thanks for the clarifiaction, much appreciated.