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I am a Canadian working in USA and has a rental house in Canada. Do I need to declare my rental income or losses from my rental house in Canada?

 
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7 Replies
KarenJ
Intuit Alumni

I am a Canadian working in USA and has a rental house in Canada. Do I need to declare my rental income or losses from my rental house in Canada?

When did you arrive in the US in 2018?  Were you in the US for any days in 2017 or 2016?

I am a Canadian working in USA and has a rental house in Canada. Do I need to declare my rental income or losses from my rental house in Canada?

We arrived in US in 2017. Since then we are living and working in US

I am a Canadian working in USA and has a rental house in Canada. Do I need to declare my rental income or losses from my rental house in Canada?

TurboTaxKarenJ- Thanks for answering question. I want to confirm that for year 2017 i believe I filed my tax as non-resident alien - working on a TN visa. I believe I am not a "US resident" since I have my bank accounts, home etc. in canada. Can you confirm I should be declaring rental income or loss even though I am a non-resident alien?
KarenJ
Intuit Alumni

I am a Canadian working in USA and has a rental house in Canada. Do I need to declare my rental income or losses from my rental house in Canada?

Thank you. Just wanted to make sure your were already tax residents of the US.

As US residents you must declare you worldwide income for calendar year 2018 (and every year you file a US resident return).

As such, you will need to declare your rental income and expenses.  Make sure that you indicate that it is foreign rental as it must be depreciated over 40 years.

I am a Canadian working in USA and has a rental house in Canada. Do I need to declare my rental income or losses from my rental house in Canada?

TurboTaxKarenJ

I am a Canadian working in USA and has a rental house in Canada. Do I need to declare my rental income or losses from my rental house in Canada?

Thanks for answering question. I want to confirm that for year 2017 i believe I filed my tax as non-resident alien - working on a TN visa. I believe I am not a "US resident" since I have my bank accounts, home etc. in canada. Can you confirm I should be declaring rental income or loss even though I am a non-resident alien?
KarenJ
Intuit Alumni

I am a Canadian working in USA and has a rental house in Canada. Do I need to declare my rental income or losses from my rental house in Canada?

You are welcome!  Residency for tax purposes is different than for immigration purposes.  To be a tax resident of the US. you need to pass the substantial presence test.  You must be in the US for 183 days or more determined by the following calculation:
You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least:
1. 31 days during the current year, and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
• All the days you were present in the current year, and
• 1/3 of the days you were present in the first year before the current year, and
• 1/6 of the days you were present in the second year before the current year.
So if you arrived in the US in 2017 and have not had many travels outside of the US, you would definitely be a US tax resident for 2018 as you would have had more than 183 days in the US.  Whether you should have filed as a nonresident in 2017, depends on when you arrived in the US.  If you arrived by June 2017, you were probably in the US for 183 days in 2017 and should have filed as a full year resident.  If not, you should have filed a nonresident return in 2017.  TurboTax does not handle nonresident returns.
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