Deemed disposition

[mocha_m]

Hello

Since I moved from Canada to US in 2016, in my 2016 Canadian tax returns, there is capital gain due to deemed disposition of my US rental property. I wonder for this tax paid in Canada, would that be double taxes? Since later on when the property is actually sold in US, I have to pay taxes again for the gains.

Also, I wonder how I can claim foreign tax credit for taxes paid for US rental incomes, if there is employment income and rental income in the 1040NR?

Thank you!

[nelsona]

Rev Proc 2010-19 addresses this. In essence, you can store the Cdn tax for future use when you do sell. (You can always do this, but the rev prov allows longer than 10 years if needed).