Deductions & credits

The sale of a foreign property is considered an investment property and will be reported on Schedule D.  If the property was used as your home or other personal use, then any loss would not be deductible. If it was held for investment then a loss would be allowed.

Convert the money values to US dollars on the date of the sale.  The exchange rates can be found at the following link.

• Yearly average Currency Exchange Rates

Enter this transaction in TurboTax Online or Desktop, please follow these steps:

1. Sign into your TurboTax return
2. Next click on “Wages & Income”
3. Scroll down the screen until to come to the section “Investment Income”
4. Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
5. The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
6. Since you did not receive a 1099-B, answer “no” to the 1099-B question
7. Choose type of investment you sold - select Second Home (or Other if investment home)
8. Some basic information:
   1. Description –  Usually the address of the property sold
   2. Net Proceeds – Net proceeds from the sale  (Reduce gross sales price by all selling expenses including commissions, VAT, foreign sales tax, etc.)
   3. Date Sold – Date you sold the property
9. Tell us how you acquired the property - purchased
10. Any business or rental use? - if no, then select personal use only (Please note, if personal use only, you will not be able to deduct the capital loss since no capital loss is allowed for a personal use capital asset.)
11. Some Basis information
    1. Date Acquired
    2. Original cost basis
    3. Cost of improvements
12. Next you will be able to claim the Foreign Tax Credit if you paid tax on the gain to the Canada.  

    1. Where do I enter the foreign tax credit?

Please update if you need further assistance.