I'm a US/Canadian Citizen living in Canada, married to a Canadian. I was planning on putting my filing status as "married, filing separately" since none of the other options applied, even though my husband will not be filing, as he is not American/has no US income. My rental property losses on Schedule E total ~$13k, so now I'm trying to see if I have to complete F8582.
However, when figuring my Passive Activity Losses on F8582, if I'm married filing separately (and have lived w/ my spouse during the tax year), then I don't qualify for the special allowance for rental real estate. I don't think it matters, since I don't owe any tax and am not claiming a refund, but I wanted to check to make sure I'm not missing anything.
Is "married filing separately" the correct filing status?
Will not qualifying for the special allowance impact my return in any material way?
Thanks!
Filing Status WRT Form 8582 Passive Activity Losses
Moderator: Mark T Serbinski CA CPA