My_question_is: Both question: My wife has accepted a transfer from Alberta to Pennsylvania. Her employer is providing her with an L1 visa and me a L2. it is a 4 year assignment. I have 2 questions about rental income. 1. If we rent our house in canada how will we be taxed on the income and will we loose the tax exemption for gains on a primary residence? 2. If we purchase a US property with multiple units live in one and rent the others how will this effect our taxes? I have more questions that we could schedule a time to talk about.
DAVID INGRAM REPLIES
1. You will need to file forms T11611, NR6, and a departing return from Canada - Maybe forms 1243 and 1244 as well
You must then file form T1159 and T776 each to report the rental in Canada
You will lose the primary residence designation as f the day you leave. Any profit up to the day you leave is tax free and built into form T2091/
You will then convert the Canadian figures to American and file a Schedule E and form 4562 to the 1040 you will be filing in the US.
If you paid tax on the rental to Canada, you will claim that credit on US form 1116.
2. This is more complicated but it will be taxable on your US return on schedule E and form 4562 and apart will be tax free as your US personal residence.
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