Emigration date and tax implications

[sunflower101]

Hi,

I Emigrated from Canada to USA in June 2015 and started my work here with a TN. My wife and kids got the TD with me but moved to USA in Aug 2015. Between June and August I visited Canada 2-3 times for weekends. My wife was receiving child care benefits till she moved to USA in Aug. She called to CRA to cancel it as of Aug.

First question:

I did some research on this forum, I guess because of the treaty, my Emigration date can be in June,2015 and My Wife's Emigration date can be Aug 2015 without the need to pay any foreign income tax to Canada for those 2 months. Am I right?

Second question:

My tax software takes my emigration date of June and generates paper return accordingly. But somehow SW does not asks for emigration date for my wife and uses the same emigration date as mine (June). Not sure what is the logic. I guess I can just take the paper printout and modify it to August for her return. Am I right?

Please advise.

Thanks.

[nelsona]

1. Because you kept returning to Canada (instead of them visiting you) your departure date becomes the same as your spouse.
2. See 1.

[sunflower101]

My house became a rental property when I moved. I took care of the s.216 to deduct expenses and started witholding. I made an appraisal on my moving date and keeping it with me. Not giving to CRA.

Am I missing anything here? Like, do I need to do any depreciation report annualy?
If I sell or reoccupy the house few years from now, how the taxing will work? Is it same if I sell or reoccupy?

Thanks.

[nelsona]

You will want to depreciate annually since you MUST do this in US in any event, to keep the income and tax level in both countries.

I wouldn't worry about hoe the gains will eventually be treated, other than you won't have to pay tax on the gains before you left, and will for the time after, possible minus one year's worth).

[ruib77]

I remember you mentioning in other posts that it might be a good idea to claim CCA at 2.5% as we must depreciate our Canadian rental at 2.5% for IRS anyways.

However, in my case if I claim CCA at 1%, my net rental income becomes zero. So is there a reason why I should claim higher CCA in order to match it with IRS? Is there any extra benefit for getting the numbers matched other than the ease of calculation?

[nelsona]

I don't really thing the rate of CCA is important. The idea is to do what is needed to match the tax credit with no carryforward.
I don't think it is even possible to CCA below zero net tax, and if you can it would serve no useful purpose in the 216 world.