I moved to USA on TN visa on May 2010. I have three rental properties in Canada.
Property 1: bought as primary residence in July 2006 and change of use in February 2008 as rental property.
Property 2: bought as primary residence in June 2007 and change of use in July 2010 as rental property (just after moving to USA).
Property 3: bought as rental property in August 2007.
To report IRS, for capital gain and depreciation purpose,
Should I use FMV on May 2010 for all properties?
Or FMV at “change of use†for property 1 and original price for property 3?
Reporting FMV of rental properties to IRS
Moderator: Mark T Serbinski CA CPA
Since none of these properties were subject to deemed disposition when you left Canada, their original purchase price plus eligible improvements is the adjusted basis for cap gains purposes -- except for the one that was your principal residence at the time you left canada, which will be FMV when you left. US doesn't recognize change of use on former homes in determining cap gains.
From IRS Pub 527:
When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of fair market value or adjusted basis on the date of conversion.
From IRS Pub 527:
When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of fair market value or adjusted basis on the date of conversion.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
The choice is yours.
But be careful. all the values we are discussing are in the USD current rate in effect at those various times. In 2007, your house value may have been higher in CAD, but lower in USD.
But be careful. all the values we are discussing are in the USD current rate in effect at those various times. In 2007, your house value may have been higher in CAD, but lower in USD.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Re: Reporting FMV of rental properties to IRS
[quote="paulto"]I moved to USA on TN visa on May 2010. I have three rental properties in Canada.
Property 1: bought as primary residence in July 2006 and change of use in February 2008 as rental property.
Property 2: bought as primary residence in June 2007 and change of use in July 2010 as rental property (just after moving to USA).
Property 3: bought as rental property in August 2007.
To report IRS, for capital gain and depreciation purpose,
Should I use FMV on May 2010 for all properties?
Or FMV at “change of use†for property 1 and original price for property 3?
http://letzoo.co.uk/landlords-that-acce ... rvices.php[/quote]
Hello there,
Are these properties still available for rent?
Thanks in advance
Property 1: bought as primary residence in July 2006 and change of use in February 2008 as rental property.
Property 2: bought as primary residence in June 2007 and change of use in July 2010 as rental property (just after moving to USA).
Property 3: bought as rental property in August 2007.
To report IRS, for capital gain and depreciation purpose,
Should I use FMV on May 2010 for all properties?
Or FMV at “change of use†for property 1 and original price for property 3?
http://letzoo.co.uk/landlords-that-acce ... rvices.php[/quote]
Hello there,
Are these properties still available for rent?
Thanks in advance
Re: Reporting FMV of rental properties to IRS
[quote="paulto"]I moved to USA on TN visa on May 2010. I have three rental properties in Canada.
Property 1: bought as primary residence in July 2006 and change of use in February 2008 as rental property.
Property 2: bought as primary residence in June 2007 and change of use in July 2010 as rental property (just after moving to USA).
Property 3: bought as rental property in August 2007.
To report IRS, for capital gain and depreciation purpose,
Should I use FMV on May 2010 for all properties?
Or FMV at “change of use†for property 1 and original price for property 3?
http://letzoo.co.uk/landlords-that-acce ... rvices.php
[/quote]
Hello there,
Are these properties still available for rent?
Thanks in advance
Property 1: bought as primary residence in July 2006 and change of use in February 2008 as rental property.
Property 2: bought as primary residence in June 2007 and change of use in July 2010 as rental property (just after moving to USA).
Property 3: bought as rental property in August 2007.
To report IRS, for capital gain and depreciation purpose,
Should I use FMV on May 2010 for all properties?
Or FMV at “change of use†for property 1 and original price for property 3?
http://letzoo.co.uk/landlords-that-acce ... rvices.php
[/quote]
Hello there,
Are these properties still available for rent?
Thanks in advance