Please tell me if this is correct.
A Canadian married couple jointly own rental property in Canada. For CRA purposes, I understand that all income is taxable to the spouse who provided funds for the purchase of the property. Correct?
Now say the other spouse is an American dual citizen and files MFS. Is this rental income reportable to the IRS?
Further, does the property have a FATCA reporting requirement?
Community Property?
Moderator: Mark T Serbinski CA CPA
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Sorry my original post was a little bit vague. I'm helping someone out with their US filings. A CPA does their Canadian returns, and lists all rental income in the name of the working spouse, although both names are on the property title. I understand this to be correct under CRA rules.
The non-working spouse is the American citizen, and files a separate return with the IRS so the Canadian partner doesn't have any US obligations. In the past, I have always made the assumption that the American return should match up with the Canadian, but I read something that made me wonder if the American spouse should be declaring 50% of the rental income.
I think I found the answer to the FATCA question. Because the property is owned directly, I think it is not a specified financial asset.
The non-working spouse is the American citizen, and files a separate return with the IRS so the Canadian partner doesn't have any US obligations. In the past, I have always made the assumption that the American return should match up with the Canadian, but I read something that made me wonder if the American spouse should be declaring 50% of the rental income.
I think I found the answer to the FATCA question. Because the property is owned directly, I think it is not a specified financial asset.
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- Posts: 41
- Joined: Sat Jan 03, 2015 8:58 pm