This is a great website it has made me aware of the complexity of issues surrounding tax and citizenship.
I married my wife two years ago in 2004. We brought a house in Canada in late 2003. We have done nothing tax reporting wise for the property (US & / or Canada). Before all of our status changes, she was in the US on a TN visa. No house then, and a tax professional said she did not need to file Canadian taxes. Me, I was a simple 1040 EZ. That was then, Now Her tax problems are mine. After reading some of the postings here I realized that our tax situation is very different now, and we are behind in the tax game.
Can you recommend any reading materials that will help get us upto speed with issues related to owning property in Canada for US residents and now citizens.
Where should I begin research? Us citizen, Canadian wife...
Moderator: Mark T Serbinski CA CPA
Not sure what your status is now.
Are you renting the Cdn home out to someone? Where do tthe 2 of you live?
If not rented out, and you live in US, then there is no reporting need to be done in either country, this is merely your 'cottage' in Canada. You will only report it when you sell (don't forget that the mortgage interst and property tax is still dedcutible in uS even on foreign homes)
If you have been renting out, then you have some serious catch-up to do.
Are you renting the Cdn home out to someone? Where do tthe 2 of you live?
If not rented out, and you live in US, then there is no reporting need to be done in either country, this is merely your 'cottage' in Canada. You will only report it when you sell (don't forget that the mortgage interst and property tax is still dedcutible in uS even on foreign homes)
If you have been renting out, then you have some serious catch-up to do.
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
Hi Nelsona, thank you for replying.
Your first question about our status... "Not sure what your status is now?"
Well, we both live and work in the US. She is undergoing the whole process of becoming a US citizen.
Second qeustion, "Are you renting the Cdn home out to someone?"
No, my brother in-law had lived in it for one year, but we collected no rent from him, he acted as sort of a security system for us, and in this way we were also able to use the place like a cottage whenever we visited.
Lastly, was not aware that we could deduct interest and property taxes on foreign real estate. What about her Canadian Student loans. Can this be deducted in a similar fashion?
Thanks again,
Your first question about our status... "Not sure what your status is now?"
Well, we both live and work in the US. She is undergoing the whole process of becoming a US citizen.
Second qeustion, "Are you renting the Cdn home out to someone?"
No, my brother in-law had lived in it for one year, but we collected no rent from him, he acted as sort of a security system for us, and in this way we were also able to use the place like a cottage whenever we visited.
Lastly, was not aware that we could deduct interest and property taxes on foreign real estate. What about her Canadian Student loans. Can this be deducted in a similar fashion?
Thanks again,
G luvn
So your situation is simplest one, as I outlined above.
Yes she can deduct any tuition interst she is paying. She does not need a specific form from the lender.
There are very few dedcutions that the IRS insists on being sourced in US, interst payments, mortgage and property taxes are not among them. These are fully claimable.
Yes she can deduct any tuition interst she is paying. She does not need a specific form from the lender.
There are very few dedcutions that the IRS insists on being sourced in US, interst payments, mortgage and property taxes are not among them. These are fully claimable.
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