Moving back to Canada, tax implications

[MCH]

Hello,
My wife and I are both dual citizens residing in Florida for over ten years and we own 2 condominiums, a rental unit and our principal residence, both names on both deeds . We file our income tax jointly and rental income / loss is 50/50.
My wife prefers to move back to Ontario where we own a home.
From taxes point of view, would it be best and simpler if we both move back vs. she moves back alone and I file my own taxes in the US? how this will impact previous rental property depreciation? Who claim the future loss/income on the rental? I think I can claim full loss/income for the upcoming years even if my wife’s name on the deed (co-owner). Am I wrong?

Best Regards,
Mike

[MCH]

MCH wrote:
> Hello,
> My wife and I are both dual citizens residing in Florida for over ten years
> and we own 2 condominiums, a rental unit and our principal residence, both
> names on both deeds . We file our income tax jointly and rental income /
> loss is 50/50.
> My wife prefers to move back to Ontario where we own a home.
> From taxes point of view, would it be best and simpler if we both move back
> vs. she moves back alone and I file my own taxes in the US? how this will
> impact previous rental property depreciation? Who claim the future
> loss/income on the rental? I think I can claim full loss/income for the
> upcoming years even if my wife’s name on the deed (co-owner). Am I wrong?
>
> Best Regards,
> Mike

[sk8man]

If you both become residents of Canada again, you will file taxes based on your worldwide income with the Canadian Revenue Agency. Regarding your rental property in Florida, the depreciation you've claimed while in the US could be subject to recapture rules, and future rental income/loss would be declared in Canada. Since you're both on the deed, the rental income/loss should continue to be split 50/50, even if you are the one primarily managing it. It might be a good idea to consult with a cross-border tax specialist to get advice tailored to your specific situation.

[Fricenaz]

We'll definitely need to be careful about the depreciation recapture for our Florida rental. Splitting the income 50/50 makes sense, but we'll reach out to a cross-border tax specialist to ensure we're handling everything correctly when we move back to Canada.

I recently read an article about Cheap Canada Local & Long Distance Movers Near Me, which discussed various tips for a smooth and cost-effective move back to Canada. The article highlighted the importance of planning and budgeting, finding reliable movers, and ensuring all necessary documents are prepared for a seamless transition. This is especially relevant to your situation as moving both your household and navigating the tax implications can be quite complex. You might find it helpful to check out this resource for more information: https://threemovers.com/canada/