@paulreese18 , as I get from your detailed post --- you bought / converted a residential property into residential income property ( in Canada ) in 2011. Your basis in the property was and continues to be Acquisition cost in US$ of 2011. Your depreciation basis at the time was Acquisition Cost LESS Land Cost. This is again in US$ of 2011. From then your basis and acquisition basis and Depreciation basis remains the same in US$. You cannot adjust these figures ONLY in case you make improvements ( increases the basis and the depreciation basis -- additional depreciation). Your Schedule-E recognitions for the year i.e gross rent, expenses, taxes etc etc. are based on either US$ of the day or average US$ for the year/quarter/month etc -- but you must use the same modality all the time.
Does this make sense ?
